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please advice on total loss settlement

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Posted: Thu Nov 24, 2011 6:13 pm   Post subject: please advice on total loss settlement   We were rear ended at 35mph the other persons insurance company stated my car is a total loss they only want to pay me 5000 the bank that is loaning me wants 9000. With that said is it true that he is still bound by law to protect the banks rights and put their name on the check even though it's not my insurance company or can he get off his high hose and put it in my name if he really felt like it? Please advice _________________ Register Now to have your Insurance queries solved.	Joanpatterson Guest
Posted: Thu Nov 24, 2011 8:30 pm   Post subject:    The other carrier does not need to protect the lien holder unless the lien holder has put them on notice in some way (i.e. the bank tells the insurance company that they have a lien and that it needs to be protected). But even than, its still a question of law if that notice needs to be acted upon. But most carriers at that point will include the lien holders name on the check. But the other issues is who is going to take possession of the salvage. If that insurance company is, than they need the title which means that they will need to pay the bank directly. They will need to get a "Letter of Guarantee" from the bank stating that the title will be release for that $5000. This does not mean you won't still owe $4000 on the loan... that is between you and your lien holder. But the complication is also why you owe $9000 on a vehicle that is now only worth $4000. It was a worse situation when you bought the vehicle. Something went wrong when you bought that vehicle. Please don't dig yourself any deeper into that financial whole. Don't roll loans into other loans.	tcope Forum Expert Joined: 22 Nov 2006 Posts: 5199 Location: Salt Lake City, UT 286.08 Dollars($)
Posted: Fri Nov 25, 2011 10:53 am   Post subject:    Thats right, you shouldn't be worried about on who's name the check will be issued, but actually be more worried about how you should repay the entire loan for a car that you don't have anymore. Try to negotiate with your lien holder. _________________ Register Now to have your Insurance queries solved.	Onix Guest

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