by Guest » Thu Sep 22, 2011 06:12 pm
Hi, I was recently in an accident and I need advice/help. The other driver was at fault, so it's their insurance i'm dealing with. I have an 03 Lexus with a lot of miles and it's valued at $8100 but the damages come to about $4300. Also, I have a lien holder on my vehicle and I currently owe $7000. With all that being said, they deemed my car a total loss because of the 51%. After the settlement is sent to the lein holder, there will still be a sum left over that goes to me. I still want to keep my car and try to get it fixed or even sale it because the damage is not that bad. It would be difficult for me to obtain another car, as I am a struggling college student. At first, I was informed that keeping my car would be ok because I owed less on it than it's actual value. But now the insurance company says I cannot keep it because I have a lien holder. I'm really confused. I just need transportation to get to work and school. Any ideas on what I should do?
Posted: Thu Sep 22, 2011 06:42 pm Post Subject:
I have _never_ heard of an insurance company totally out a vehicle at 51%. Usually it's around 80% and that is pretty standard. Why would a carrier want to pay twice as much on a claim when they don't need to?
If you kept the vehicle the carrier will pay you for the offer less the salvage value. If this new amount is less then the payoff then your lien holder probably won't agree to you being allowed to keep the vehicle. If the new payment is more then you owe then your lien holder will simply need to agree to you keeping the vehicle. They would then send the title to you once the vehicle was paid off.
If you keep the vehicle you also want to find out what the insurance company will report to the state. Your title may be changed to a salvage title. If so, it might be difficult to register. You need to find out.
Posted: Fri Sep 23, 2011 09:43 am Post Subject:
Talk to your insurer and you lien holder about keeping the car.
If you keep your car, the insurer should pay the lien holder the total loss settlement deducting the salvage value from it.
Only as tcope says, if this amount is less than the amount you owe on the car, your lien holder would not permit you to keep it.
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