by Guest » Thu Jan 03, 2008 05:28 am
Hi, everyone
I had a car accident three days ago, just got dicharged from the hospital. I called the insurance company today and they said the car is a total loss (i haven't seen it after the accident). They are going to cut me a cheque with BOTH the bank(leinholder) and my name on it. The amount will be the sale value $20,000.
I've only had the car for 1 months (isn't that sad?), and I still owe the bank about $22,000 as of now (including interest and other charges). I understand the bank has the right to collect the money before me since they own a larger portion of the car than I do, but is there any way that I can keep the cheque and keep paying off the loan monthly??? i can't accept the fact that I will be left with NO CAR, NO MONEY, $ 2000 DEBT, a CONCUSION, and NO WEDGES for the next 3 weeks!
I know some of you guys are very experienced adjusters, have you ever dealt with anything like this? Is there another way around this? ---- at least let me keep 1/2 of the cheque and pay the rest of the loan by montly as before.
Thank you so much!!!!!!!!!!
I really need your advices!!!
I had a car accident three days ago, just got dicharged from the hospital. I called the insurance company today and they said the car is a total loss (i haven't seen it after the accident). They are going to cut me a cheque with BOTH the bank(leinholder) and my name on it. The amount will be the sale value $20,000.
I've only had the car for 1 months (isn't that sad?), and I still owe the bank about $22,000 as of now (including interest and other charges). I understand the bank has the right to collect the money before me since they own a larger portion of the car than I do, but is there any way that I can keep the cheque and keep paying off the loan monthly??? i can't accept the fact that I will be left with NO CAR, NO MONEY, $ 2000 DEBT, a CONCUSION, and NO WEDGES for the next 3 weeks!
I know some of you guys are very experienced adjusters, have you ever dealt with anything like this? Is there another way around this? ---- at least let me keep 1/2 of the cheque and pay the rest of the loan by montly as before.
Thank you so much!!!!!!!!!!
I really need your advices!!!
Posted: Thu Jan 03, 2008 05:33 am Post Subject:
my brain is still in concusion stage, i can't think of anything right now :(
Posted: Thu Jan 03, 2008 05:46 am Post Subject:
sorry, i totally messed up.....above are all me....i tried to register but then i can't log in!
anyways, please forgive me guys, considering my concusion.....
Posted: Thu Jan 03, 2008 08:28 am Post Subject: Please let us know!
Hi there!
Welcome to our community!
I tried to register but then i can't log in!
I'd like to know about the message thats showing up when you had tried to register. It could be that you have actually registered, but the problem is occurring while you are trying to log-in. Please keep us informed & help us identify the problem faster.
Thanks,
Evan
Posted: Thu Jan 03, 2008 10:01 am Post Subject:
Hi Fiona, I empathize with you. This is what we call the upside_down situation, you owe more on your car than what the insurer is ready to write you.
They are going to cut me a cheque with BOTH the bank(leinholder) and my name on it
And you have to redirect the check to the banker since you owe more than the compensation amount. The remaining $2,000 can be covered by the gap insurance. You need to find out about the gap insurance from your banker. If he has it in place it will meet the difference between the lien and the claim check.
I can keep the cheque and keep paying off the loan monthly???
No!! When the car is the total loss the insurer needs to obtain the clear title of the car from its owner (the lien holder in your case). Therefore, there is no way you can bypass the lien holder and keep the check yourself.
Thanks,
Carol
Posted: Thu Jan 03, 2008 11:41 am Post Subject:
Good morning Fiona and welcome....I'm so glad you were'nt more seriously injured...
Couple of things....I don't understand this statement.......
The amount will be the sale value $20,000
What do you mean by ''sale value''...maybe you mean the value they came up with?Carol is correct, IF you have GAP insurance it should cover well, the 'gap' between the car's value and the balance....What else was added to your vehicle loan? Sales tax? Exteneded warranty? If you bought an extended warranty CANCEL IT NOW! You should get a rebate...How much is your deductible? See my point here is I think they are paying you the fair amount of the vehicles value....there are probably some other things in here........
NO way can the carrier pay you ANY of this money.........Please answer my questions (ded.what else you financed etc)...and we'll see if we can come up with some suggestions...also cancel your insurance policy too if you haven't unless you plan to replace this vehicle within the next week....
Posted: Thu Jan 03, 2008 10:17 pm Post Subject:
One more question did you have a trade in. If so did you owe any money that was absorbed into the loan?
Posted: Thu Jan 03, 2008 11:25 pm Post Subject:
can't believe you guys replied so fast..... i can't say thank you enough.
I found my sales paper and here's the details.
the cash selling price $20,000.00
cash down payment $2,000.00
CASH SELLING PRICE LESS
TOTAL DOWN PAYMENT $18,000.00
optional insurance
- health/accident $500.13
- extended warranty $1100.00
agreement registration $50.00
UNPAID BALANCE OF CASH
SELLING PRICE TO BE FINANCED $19650.13
INTEREST FOR 60 MONTHS $2,376.18
TOTAL BALANCE $22026.31
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The remaining $2,000 can be covered by the gap insurance.
i don't think i have the gap insurance, at least it's not on my insurance statement.
If you bought an extended warranty CANCEL IT NOW! You should get a rebate...
i purchased the extended warranty from the dealer, can i cancel it??? i will talk to them tomorrow to find out!
How much is your deductible? See my point here is I think they are paying you the fair amount of the vehicles value....there are probably some other things in here........
the deductible is $1000.00, i increased it from $500 to lower my monthly pay (regret).... do i have to pay the deductible upfront? or it will be automatically deducted from the cheque?
also cancel your insurance policy too if you haven't unless you plan to replace this vehicle within the next week....
CANCLE MY INSURANCE? can i do that right now? i mean i just filed my claim couple days ago, i haven't get the cheque for the car and refund for my medical bills yet! if i cancle it right now, will the insurance company still take care of me?
*********************************************
no matter what the results are, I JUST WANT TO SAY THANK YOU! i really appreciate you guys' help!!!
(i just graduated from college last summer, i worki& live in this city all by myself. it's has been a tough start for 2008...hahaha...hopefully i can get my life back on track soon!)
Posted: Fri Jan 04, 2008 05:54 am Post Subject:
Hi Fiona, I'm sorry to hear of your predicament. I'd like to make a couple of comments that may help a bit...
First of all, not all automobile insurance policies actually require that you physically add gap coverage to your policy. There are certain carriers that automatically include the gap coverage as a provision in their contracts for vehicles less than a certain age that maintain full coverage, which you do. We don't know if your car would qualify, as we don't know what year of vehicle you owned. Gap coverage normally applies only to cars less than a year or two old, so this may be a moot point.
Secondly, I noticed this in your coverage description:
optional insurance
- health/accident $500.13
This may be a good thing, as you mentioned that you were hospitalized. Find the paperwork for when you bought the car and look for the information on this coverage. You might find something there. Hmmm.
As far as the check that you are (not) going to receive, the other posters are correct. The lienholder has first position on any insurance funds paid specifically for damage to their interest (the car). Sorry 'bout that one.
The only disagreement that I may have with something in this thread would be this:
CANCLE MY INSURANCE? can i do that right now?
Yes, you can do that, but I don't think that I would recommend it. Now, if you have more than one vehicle insured on the same policy, I would recommend canceling the coverage on this car. I would NOT suggest that you cancel the entire policy by any stretch until you do some serious checking.
Most states allow carriers to charge fees for reinstating coverage once canceled by the insured, and there is a possibility (small) that you could be surcharged when you look to get your insurance back. Depending on what state you live in, one of the most common questions asked by producers when people shop for insurance is "who do you have your insurance with now?" If the answer is "I don't," then you could have an issue. Any producer worth his or her salt could convince an underwriter to overlook the small lapse in coverage, but that is certainly no guarantee.
Finally, here's my potentially good news. You didn't mention if you were covered by any health insurance plan or contract other than what you bought with the car, and what your injuries were other than your concussion. Not that it's really any of my business, but it might help with this $2,000 thing.
Since you purchased the accident and health policy when you bought your car, there's a possibility that this coverage could be considered an aftermarket insurance plan, in layman's terms. What this means is that this plan could put some dollars in your pocket over and above what your other (if any) medical coverage would pay. Don't forget- your car insurance could also cover (again, depending on where you live) a portion of your wage loss, your hospital expenses, and provide you with rental reimbursement coverage.
So, you take the dollars from the car dealer health plan, see what you can get out of your car insurance for wage loss, medical and rental car, and use the excess dollars to pay off or reduce the balance owed on the bank loan.
Now, this would take a mighty confluence of events to actually happen. But trust me, (not that you have any reason to)- it could work.
Sorry about being so long winded. It's late. Good luck!
InsTeacher 8)
Posted: Fri Jan 04, 2008 07:57 am Post Subject:
Another thing that has not been mentioned. You posted that your total balance is about 22K. That figure would seem to include 60 months of interest for the loan or according to your figures about $2,300.00. As the insurance company is paying 20K, it would appear your balance is being paid off and you would not owe the interest. So according to you figures, you may owe less then 20K... if there is any balance once the loan is paid off and any outstanding fees or interest to date is paid, your loan company should send you the balance. Most likely it will not be much.
Also, the $500. you mention for health/accident insurance... do you mean car insurance or is this a policy above and beyond regualar car insurance? If this is just regular car insurance, cancel it if you are not going to purchase another car, or speak to your insurance company once you get a new car and the rate may change. If you paid all up front, you should get a partial refund if you cancel... minus any applicable charges or fees.
Posted: Fri Jan 04, 2008 11:00 am Post Subject:
Oh fiona honey, you are in a lot better shape than you thought (i think! :roll: )
First (as mentioned) you will owe the 'pay off' of your note NOT the 60 months interest!!
$2,376.18
I would bet this number is reduced to atleast 500.00 didn't you say you just had it for a month? This is the amount of interest to be paid over the entire 60 months...so you will only owe interest for as long as the note has been in effect (a month right)...call you lein holder ask them for THE PAY OFF....More than likely they will say it is 20k and change...first bit of good news!extended warranty $1100.00
Yes, cancel this YESTERDAY! You should get a prorated amount back from the warranty company, there is likely a min. but I would bet you'd get at least 600 bucks or better...I've heard that some of these cannot be canceled, which I don't understand, and hopefully will not apply to you...you will need to find these papers (you should have a type of policy looking thing) and read the portion on 'canceling' this warranty....second bit of good news!health/accident $500.13
I'm not really sure what this is...if it said, life/disability I'd have had a clue....pull this paper work out also and see what is best, filing a claim with this outfit, or canceling this policy as well......third bit of good news!GAP insurance many times will be included in the loan (which we don't see) or as ins teach said, in your policy...so ask your agent or look at your dec sheet to see i you have it....although I don't think you're need it now (because I think once your interest is removed you'll be fine!)
do i have to pay the deductible upfront?
NOor it will be automatically deducted from the cheque?
YESi haven't get the cheque for the car and refund for my medical bills yet!
Wait a minute what is this about? Do you live in a PIP state or do you have medpay coverage? What state do you live in? And what were the facts of your loss...(may have more good news for you!)....Re: canceling your auto policy....ins. teacher of course is correct, that is why I said.....
also cancel your insurance policy too if you haven't unless you plan to replace this vehicle within the next week....
My point here is if it's gonna be an extended period of time before you replace your vehicle then no need to pay for the premium...of course you'd need to check on this with your adjuster...as to paying the claim if the policy is enforce on the date of loss then the claim will be paid...but more than likely you will be replacing your vehicle sooner than you thought now right?another thing, if your adjuster hasn't told you ask them...All states require that the sales tax be 'given back' to the owner...in some way or another (assuming you had to pay sales tax on the vehicle when you purchased it)...some states include it with the loss settlement, in your case if your area has a 7% sales tax that is an additional $1400.00 ! now some states (mine included) pay this by way of an affidavit, and you simply take that to your DMV when you register your new vehicle, (meaning you will only pay sales tax on anything you buy that is OVER 20k..understand)...fourth bit of good news!
Let us know how things are coming and any other questions we can help you with........looks to me like you are going to come out of this just fine .... :wink: :D
(i just graduated from college last summer, i worki& live in this city all by myself. it's has been a tough start for 2008...hahaha...hopefully i can get my life back on track soon!)
We got your back hon.....and will help in anyway we can! Please keep us updated!Add your comment