Denied claim on total loss and financed

by dc » Tue Apr 23, 2013 06:28 pm
Posts: 1
Joined: 23 Apr 2013

Without going into too much detail, I filed an insurance claim for a stolen vehicle and the claim was subsequently denied by the insurance company. I won't go into the reason. But I am now on the hook for the balance of the car with my finance company which is about 17K. The finance company does not know of the loss yet but they were informed of my cancelling my policy. Now they are sending me letters stating I need to provide coverage for a vehicle that does not exist anymore. What are my options? I am sure once I tell them of the loss they will want a lump sum of the entire balance. I think I am beyond screwed here. Any suggestions?
I haven't missed any car payments since the loss by the way.

Total Comments: 2

Posted: Tue Apr 23, 2013 08:06 pm Post Subject:

It's hard to give you advice without knowing more details. You don't have to give all the details, but what was the reason that the claim was denied? Negligence? Fraud? In any case, I recommend telling the truth because lying will only get you more into more trouble. Even if the finance company demands full payment, you can still negotiate a monthly payment that can satisfy your loan.

Posted: Wed Apr 24, 2013 01:14 am Post Subject:

If they ask for all of the money up front, can you pay? If you don't pay they get nothing. Seems like they might be in a better situation if they allow you to keep the loan as long as you are making payments. However, there is no longer any collateral on the loan. I'm sure this would make them nervous.

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