Is it legal for the insurance company not to pay the loan company on a totaled car?
Yes. The insurance policy is a contract. All it requires the insurance company to do is to pay the fair market value of the vehicle. You would need to get what is called gap insurance to pay the difference inbetween the market value and the loan value.
How do you pay back the loan company after your car has been repossessed?
%DETAILS% nan, it depends on what you and the LENDER agree on. You agreed to pay them so much a month before and didnt manage to do it, sooo they will be tougher the next time around. I got a different loan to pay off the very first loan, the interest was a little higher, but I figured I would still owe the very first lender the difference of what the car was sold at at act. (Car was worth 16k, they would prob auction for 10-12k.) I would be held liable for the differnce. I would still be out a few thousand dollars, but at least this way I would have a car.
What do you do if the insurance for a totaled car does not pay off the car loan?
I faced the same thing about a year ago. The insurance company did not want to give me what was needed. I got on-line and found many cars that were just like mine and displayed them that my car was worth more than they were wanting to give me. They still did not want to give me what the car was worth. So I went to petite claims court and filed suit on the driver of the other car. The person’s insurance has to represent them. Also go and look at the comps that the insurance company are using for your car to see if you can substitute the car for what they want to give you. ResponseUltimately it is your responsibility that you either made low payments, took out a very long loan, or picked a car with high depreciation. The insurance company is not liable for the inflated amount you owe–only what the car is worth. ResponseThe insurance company will only give you the value of the vehicle, as per the “Kelly Blue Book”. They will also send an appraiser out to see what the condition of the car was, as in mileage, any previous harm. If the accident was another driver’s fault, you have to sue him and/or his insurance company for the remaining balance.Whatever you borrowed to obtain the vehicle wil always be more than the car is worth. You have already lost money on it as soon as you drove it off the car lot. But do your research. Go online for “Kelly Blue Book”, and get the estimate of the car’s value. If it is more, then dispute it with the insurance company. Print the page out. ReactionWhen you bought the car fresh or used from the dealer you had the option to purchase something called GAP INSURANCE from them (the Dealer, not the insurance company) for your exact situation. If you did not have enough equity in your car for the insurance pay off to cover it AND did not have gap insurance. basically you are screwed and responsible for the rest of the loan amount car or no car. Some people believe Gap insurance is a rip off so they do not suggest it to you and some just don’t know what it is. They do not need to be selling cars. Not fair but the way of life. Father is an insurance sales man. I also had a chick hit me I had GAP insurance and she did not. She still had to pay off the balance on the loan even tho’ she did not have the car. The courts won’t do much because you had the option to purchase gap insurance and you did not, it does not matter that you did not know.
Do you have to keep making your car payments when the car is totaled and you are in the process of suing your insurance company to pay for the car?
Yes. Unluckily yes. Even if you lose your lawsuit and are left with a uselss car you still have to pay off the loan or default on it and let the dealership reposess it. Even then the dealership will ruin your credit and charge you for the remainder of the loan minus whatever they sell the car for, which won’t be close to it’s value. Bottom line, pay it or file bankruptcy or find a good lawyer that know a debt dispute loophole .
Is it legal to not get your car repaired after the insurance company paid the claim?
It is legal as long as you don’t have an outstanding loan on the vehicle, if your insurance company paid the claim, and you keep the car. Your insurance company has the right to drop coverage or reduce the amount of coverage. If you have a loan, in most states, the check has to be issued to the bod shop directly or to you and the lienholder jointly. Yes it is legal. However … should you get into another accident, previous unrepaired harm is NOT covered and can cause a problem with determing what is the extra harm from the 2nd accident.
If the finance company thought your insurance was cancelled and put an add on policy to your loan and the car was totaled while both policies were in effect will both policies pay for the loss?
No, the finance company would simply refund any monies they charged you for compelled placed insurance and your primary insurance company would be responsible for footing the bill.
Does an insurance company have ownership of the vehicle after they pay for your total loss?
If you lodge a total loss with an insurance company & choose not to keep the car, you have to send them your signed title and release possession of your vehicle to them in order to be paid for the claim. You do have the option of retaining it for less settlement money (due to salvage value and, in certain states, license & fees, taxes, etc…If you choose to retain, you will still not be paid for the repair of your vehicle, it is still totalled. Depending on the state, you also must get a salvage title on the vehicle until you have had it repaired & investigated by the state to be deemed roadworthy before applying for a rebuilt title.
Is it legal for your insurance company to deny a loss for a car that was totaled?
It would depend on why the car was totaled and who’s fault the accident was and what time of insurance do you have PLPD or Utter Coverage
If you total your car in an accident can a insurance company pay below low blue book?
Each situation is different and there is no definite reaction to this because there is no stardard but Yes there is a possibility.
If the insurance company totals your car can they take it from you?
After they give you a check for the value of the car (less your deductible), it is their car. If you want to keep it and repair it yourself, you can buy it back for the “residual value”. You can negotiate this value with the adjustor. One caution: If you keep the car you may also have to pay some storage charges to the repair shop that is holding it, especially if you do not have them make the repairs.
Your car was recently totaled by insurance company can you buy it back from the insurance company?
I totaled my Mustang and was able to buy it back from the insurance company. They gave me the Blue-Book value less my $500 deductable. They would not insure it after I repaired it, I had to switch insurance carriers to get coverage.
What does the insurance company have to pay if you total your car with total coverage?
They pay whatever the value is of your vehicle less the deductible..
The value they pay, in most cases, will be the trade-in value or average private sale value. Not enough to substitute the car even when you add the deductible..
anything you do with the car or any one else but beware when claiming on insurance they will charge you more next time
Can carriers raise your premiums for a serious accident where your car is totaled and the insurance company pays for your car but the insurance investigator ruled that the accident was not your fault?
yes if your ins.co. pays for your car..
They CanEven if they don’t pay for your car. My agent warned me that my homeowners premiums could be raised just for filing claims! They used to send an adjustor out automatically if there was a hailstorm or windstorm, but not any more. I just dreamed an ajustor to estimate the harm last spring and let me know if it would exceed my deductible.
What do you do when you total a car and still owe the finance company more than the retail value that insurance will pay and you have no gap insurance?
Response 1 .
I hate to have to be the one to tell you this, but there is not too much you can do. If you feel the insurance company’s valuation is wrong, and the settlement is unfair, you could discusss your situation with one or more ATTORNEYS [“usually,” a very first visit is free]. Don’t go to any attorney that doesn’t suggest free very first consultations, as there are many who do..
Otherwise, you’re just going to have to make the best of a bad situation. In order to do that, I sugguest:.
1. Discuss your situation with your finance company and, with a entire lot of luck, they MAY forgive PART of your note..
2. UNLESS there is a PREPAYMENT PENALTY clause in your loan note, take the ENTIRE settlement money and pay it ALL to the finance company. This gets your balance as low as possible..
3. TO PREVENT Harm TO YOUR CREDIT RATING, AND a lot of continuing collection pressures, proceed to make your payments until your loan is fully paid off. Not only will this protect your credit record, and prevent a lot of harassment, it is the right thing to do.
When a car is totaled with a balance owed to the finance company and there is no car insurance is is possible the finance company will give another loan and consilidate the payments?
Yes on certain conditions. The very first is that the amount still owed to the financial institution is not greater than the maximum amount permitted on the fresh vehicle being purchased. what i mean is if you were to buy a 06 Taurus for Ten,990 and you still owed 26,000 on your previous vehicle the financing institution would not permit you to buy a Taurus for 37,000 plus, so if you don’t owe much and your credit is good enough you should be fine!
Do insurance companies pay for the totaled car causing a collision in a DUI case?
yes if you have collision coverage barring any exclusions in your policy to the contrary.
What happens when you default on your loan and the insurance company pays out on your loan?
In most places the money goes to the BANK! Their name is on the title of the vehicle until you make all your payments and they sign a “release of lein”.
Your friend sold you his car take over paymentsHe took the car off his insurance you insured the car and then totaled it but you are not on the title Will your insurance company pay for it?
As long as you have the title that he signed off of it and you signed on and you have insurance on the vehicle it will be covered.
Can you turn down a total by the insurance company and pay to have your car repaired by myself and still have car insurance?
Yeah, there should be no problem cancelling a claim on your insurance if it isn’t under way already.
Does the insurance company own the car after it is totaled?
You can put in an suggest to buy the written off vehicle from the Insurers if you want to repair it yourself. A write off is beyond economical repair, meaning it costs more than the car is worth to fix it. It doesn’t mean it cannot be repaired..
There are different categories of scrapped vehicles, D, C etc. The Insurers sell the written off cars on to scrap merchants or motor traders to recoup their losses. You are flawlessly entitled to buy the car back yourself for a nominal price. If the Insurers are lodging your claim and providing you a settlement to get a replacement car, the damged vehicle does in effect belong to the Insurers..
Hope this helps, I worked in insurance for Ten years.
How do you negotiate with an insurance company for your totaled car?
Very first off, if your vehicle is totalled, the insurance company must give you a rental vehicle. Check the NADA current value of your vehicle , as well as several other resources such as Edmonds.com, Kelly Blue Book, etc. Be sure to look up the options that you had on your car an assure that the insurance company includes them when they are figuring the price out. Also, if you have things like brand fresh tires, mention it, as it could make the value go higher. Wait for them to tell you what they are going to suggest you before you say anything about the price. It could make a difference if you are dealing with your insurance company or if you are dealing with the company of the person who hit you. If the insurance company thinks they will be avoiding a possible lawsuit before they may give you a fairer value. However, don’t come out gun blazing talking about lawsuits, etc. Wait to see what they want to suggest you. See if you think that number is fair. If so, you are fine. If not, come back with a counter suggest (having done the research.) Good Luck! Reaction Provided by KeepItSimpleCoaching.com (This response isn’t finish, as I was just hit and am going through this process right now…)
Your car got totaled will the insurance company pay for it if however the inspection sticker is expired?
Yes. The reason being is insurance covers the car not the person. So whether that person chooses to drive around with an expired license or an expired plate sticker is on them..
You will still get a ticket for those violations, but you will have insurance and the insurance company will abide by everything in the insurance contract.
Does your insurance company pay for your car?
If you carry total collision and replacement of your vehicle, depending on your insurance company, they will pay the blue book value of the car if it is totaled. That is why it is significant not to ever owe more than the car is worth, which is referred to as “being upsidedown.”
If an insurance company totals your car can you get a fresh car?
Totaled means that the cost to repair it is more than what its worth…they will most likely give you something below KBB …
After you’ve signed the papers at an auto dealership and driven the car off the lot the finance company wont cover you for the loan and the car gets totaled and its insured who pays for the vehicle?
Next time you post a question, read it over before hitting “save” (your question is a little hard to understand). Once you sign the papers for the car, it is yours. If you get in a car accident and the car gets totaled, the insurance company for the at fault driver is responsible to pay for the “fair market value” of the car. If you are at fault and you have collision, your insurance company will pay you fair market value less the deductable. Please be aware, if your loan was for Ten,000 but your car is truly only worth 8,000 then you will be stuck paying the extra Two,000 (unless you purchased gap insurance from the loan company)
If your car is a total loss will the insurance company help you fix it if you both pay?
If your car is deemed a total loss, the insurance company will only pay up the value of the vehicle. They will have nothing to do with the repairs. If the vehicle is worth $Five,000 and the harm is $8,000, you are going to pay $Trio,000 out of your own pocket. Once the insurance company pays you that $Five,000, they are out of the picture. Just be ready for a ‘salvage’ fee to be deducted from your settlement by the insurance company. That is what they would have gotten for your vehicle if you had surrendered it to them.
Who keeps the car if it is totaled you or the insurance company?
You can keep the car if you like, albeit I’m not sure why you’d want to keep a wrecked car. If you determine to release it to the company, they’ll eventually send it to the junkyard.
If another driver hit your parked car and their insurance company total lost the car and your car is only one year oldthey pay for the car to the company with the lean and where does that leave me.?
Unluckily, it most likely leaves you looking for another car. The insurance company is only obligated to pay the actual cash value of the car, so once they paid your loan they very likely don’t owe you any more money (unless you put down a big downpayment and owe less on the car than it’s value after the year you’ve had it.)
If a car is considered a total loss after an accident and the insurance company pays you for what the car is worth do you still have coverage on that vehicle if you contnue to drive it?
Usually if the car is a total loss, the insurance company will pay you and take the car. They then sell it for parts/salvage. If they let you keep the car, all you have to do is check on the current status of your policy and see if it is listed.
If two cars collide whose insurance company pays?
The response depends upon who is legally liable for causing the collision. Legal liability can arise from disturbance of a statute or ordinance, or from plain negligence. Negligence is basically the failure to exercise that degree of care that a reasonably prudent person would have used under the same or similar circumstances. In some states the doctrine of comparative negligence is used. This means that it is possible for each party to be found to be partially at fault. In such a case, damages are diminished by the degree to which a person is found to be negligent.
Will the insurance company pay for a car if it was stolen using the key?
Yes. My car was stolen not once, but twice within a one month period. I just moved into a fresh apartment and I accidentally left my keys suspending outside still in the lock. I awoke the next morning and instantaneously discovered that not only my keys were missing, but my car as well. They recovered it Three days later totally wrecked. I fortunately had total coverage, and they paid for all repairs & even a rental car until I got it back. They didn’t switch the locks or alarm on my car as I requested, and you guessed it, a day later my car was gone again. The insurance company gave me Two weeks, then eventually wrote the car off as a total loss, and paid me for the blue book value at the time. I only lost out $896 on the total value.
What to do if the insurance company turns down to pay sufficient car damages?
I would take the person who caused your accident to puny claims court. Make sure you have all your paper work in order and can state your case.
What if you disagree with the insurance company about totaling your car?
If you disagree about the amount of money you’re being suggested, you should very first let your insurance company know you don’t think it’s right. It’s possible that someone made an fair mistake, and if they look at the figures again they’ll catch it. If they still insist that’s the right value, tho’, you’re very likely going to have to have your car appraised (at your own expense) by an independent appraiser, or possibly two if your very first appraiser and the insurance company’s appraiser have very different opinions on the car’s worth. If that still doesn’t help, you’ll need a lawyer, because at that point your only real option is litigation.If the problem is not the money, but that you simply want your car immobile instead of having it totalled, the insurance company will generally suggest to pay you what (they think) your car is worth, after subtracting your deductible and the amount they expect to get from selling it to a salvage yard. If you do this, you will have to pay for the repairs yourself. Also, you may have problems getting insurance for that car in the future.
If someone borrows your car and total loss it will the insurance company pay for damages?
Yes. Collision coverage pays for harm to your vehicle, minus the deductible, regardless of who is driving it. Also, if you loan your vehicle to someone they are considered a permissive driver and you are liable for harm they cause in your vehicle even if they have their own insurance. Insurance always applies to the car not the driver.
What if the insurance company does not want to pay me what my car is worth?
Read your insurance policy. Most insurers will state that if you do not agree with a car’s appraised value, you have the right to hire a vehicle appraiser, at your own expense, to value your car. You can then send a counter suggest back to the insurer. If that doesn’t work they will either ask you to do arbitration or go to court.
You own your car it was totaled Should you let the insurance company have it after they pay you?
This depends on what the settlement covers I have required the insurance company to permit me to retain ownership, this reduces the settlement. Or the if you do not specify that this is what you want the insurance company gets the car.
What do insurance companies typically pay for car rentals?
Some of the basic coverages I have seen are anywhere from 20 to 30 dollars a day.
What value do car insurance companies use when totaling a car?
They will inspect the vehicle and then look at the value of it in the Kelly Blue Book or the National Auto Dealers Association guide to determine it’s value. The insurer may also consider vehicles of like kind and quality to determine that which they are sellinf for. The insurer will compare the value of the vehicle to the price necessary to repair it by getting estimate(s) from reputable auto repair shops and/or auto figure shops. If it costs more to fix than the vehicle is worth they will total the car. The statutory law of many states require that an insurer total a car if the cost of repair exceeds a stated percentage of the actual cash value.
Do you have to pay towing company if car is totaled?
If the insurance does not cover the expense it is likely the person to whom the vehicle is registered will be responsible for towing and any other subsequent charges such as storage fees.
What is the best car insurance India company Is there a loan company that do not require insurance on the car?
The best motor plan coverage India for you will depend entirelyupon your specific requirements related to insurance cover, premiumand a lot more. You need to get into a serious comparison for bestauto comparison for insurance online. No. There is no loan company in India that will not ask you forinsurance on the car.
When is a car considered totalled by the insurance company?
When the cost required to repair the car to be fully operable and safe are greater than the market value of the car. In some cases, insurance companies will proclaim a “total” if, in their opinion, it cannot be restored to a safe condition, regardless of cost.
Where to go if your Insurance company is not paying for the loss of a car accident?
Attorney General,s office where you live. Also attempt the Better Business BureauAdded: Contact the State Insurance Commission of your state and file a complaint.
Do car insurance companies check for unpaid car loans?
Absolutely. They also check to see that the vehicle is titled in the name of the person who purchased the insurance
Can you get liability insurance on your car if the insurance company totals it?
Normally yes. Some companies may require proof that you have repaired the car and it is road-worthy.
Can your insurance company takie loan car without paying you out all the money?
What an insurance company pays for a total loss vehicle has nothing to do with the amount owed on the car. Auto insurance is based on the actual cash value of the vehicle while the amount owed on the loan has nothing to do with the ACV of the vehicle. If a vehicle is totalled and you owe $5000 and the ACV is $8000 the company will issue a check for $5000 to the finance company and a check to the policyholder for $3000. If the numbers are in switch sides the insurance company pays the ACV of $5000 and you still owe $3000 to the finance company. It happens when you pay to much for the car, build up interest and fees, add other amount to the loan like if you were upside down in the last loan and they add the balance to this one. Anyone purchasing or leasing a fresh vehicle should ask their agent about GAP insurance. Because a fresh vehicle depreciates so prompt at very first you need this coverage. The dealer finance department will sell it to you for a chunk of dollars and your insurance company will sell it to you for a duo of dollars a month. The difference is amazing. GAP pays the difference in what the ACV is and what is owed on the vehicle.
Do companies have to pay car insurance for privatly wielded cars used for company use?
No Companies do not have to pay car insurance for vehicles possessed and used by their employees. Why would they. If the vehicle is used by the employee for work there is very likely a method that they use to reimburse the employee for expenses of the vehicle. This is a matter inbetween them and their employees.
What are some companies who suggest pay as you drive car insurance?
Many companies suggest pay as you drive car insurance, including Progressive and Esurance. Pay as you go drive insurance provides rates based on the type of vehicle used, measured against distance, time, place and behavior.
Do insurance companies pay for wrecked cars?
It can be said that insurance companies pay for cars after a wreckas long as you are fully insured. But when a person does get money from the insurance company it doesn’t mean that they are buying it from you. The car will have to be taken to a car junk yard and you can sell it to them.
What does the insurance company do when a car is not total in a wrecked?
If a vehicle is bruised in an auto accident the insurance company that insures the vehicle has the option to repair it, substitute it, or pay the actual cash value of the car. The last one is in the case of a total loss and the company never attempts to substitute a vehicle anymore. In this case it would repair the vehicle and pay for the cost of repair less your deductible which you will be responsible to pay for yourself.
When you still owe money on a car and it is totaled who does the insurance company pay the money to?
The language switches depending on where you live. If you borrowed directly to buy the car the Bank or Finance companywill Be registered with your insurance company and they will bepaid. If there is money left over you will get a check from the bank orthe insurance company depending on what lender and where you live. If you went to the local title loan place you may be paid directbut if you don’t pay the title loan guys they can both sue andcharge you with fraud.
When the insurance company tell you your vehicle is total and want to take t the vehicle. do the have to pay the loan off?
It gets a little complicated. When a car is proclaimed a total loss (cost of repair is 75% or more of the value of the car) the insurance pays for the fair value of the car. minus any deductible that applies. If there is a loan recorded against the car, the payment goes very first to the company that made the loan, anything left gets paid to the proprietor. But if you owe more than the car is worth, the insurance company still pays what the car is worth (to the loan company). The proprietor is then responsible for paying anything the insurance company did not pay. You can look up the fair market value of a car on line at nada bluebook or Kelley blue book.
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