Title loans and insurance claims if the car is totaled?
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I was just in an automobile accident recently and pretty sure my car is totaled. My question is, if my car is totaled, and my car title is in a title loan right now, do I pursue the insurance company to pay it off or at least to the point so I may recieve the title back?
Note that this is the other party’s inusance that I am having to deal with since the accident was her fault. Not my own insurance
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mbrcatz17 said:
Unless you have "gap coverage" on your car, through your insurance company, they have no obligation to pay it off. The policy says, they only pay the actual cash value, OR, the cost to repair, WHICHEVER IS LESS.
The payoff value, especially if you put little money down, financed it for five years or more, and have owned it for less than two years, is likely to be MORE than the actual cash value.
You need to call the loan company and find out what the payoff balance is. Then you need to go to http://www.kbb.com, and find the private party sale price for your vehicle. That will give you a rough idea, if you’re going to get enough to pay off the car.
The check will be made payable to you AND THE LENDER, so that you will only get what’s left over, after the car is paid off. IF it gets paid off, then you’ll get the title.
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0December 31st, 2009 at 5:18 am -
Jax said:
Yes, the other company will pay first to the loan company the fair market value of your vehicle. You are entitled to any remaining amount. If your vehicle is valued at 10,000 for example, and your loan is for 5,000 and there are no other loans on it, you would be entitled to 5,000. This is a fair market value that the insurance company decides. It is also assuming they decide to total your vehicle. You also may have the option of retaining salvage (keeping the car and the title) where they would actually subtract the salvage value from the total payout of the vehicle. Depending on your situation, this may or may not be advisable.
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0 0December 31st, 2009 at 5:18 am
