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Car was wrecked no insurance still owe on loan does bank make you pay for fixing car on top of loan?
Wiki User
∙ 11y ago
I am not a lawyer but any car loan I have ever signed, the following are true. The car is the collateral for the loan. The loan company a.ka.,the bank, is the owner of the car and holder of the title not you. I also make the promise that I will maintain what we call collision (accident loss) and comprehensive (theft, vandalism, weather etc. loss) which protects the bank from loss by insuring the vehicle is paid for in the event of a loss. The State mandates I carry my liability coverage. So I gather in some parts of the country this would be called full coverage.
The other important issue is because the car is in fact owned by the loan company they are listed on the insurance document as the 1rst loss payee. So if in fact you are insured the loan company will be paid first. You promised to pay the loan company x dollars when you signed the note. Nothing will relieve from paying that amound plus accrued interest. If the settlement is not enough to cover the outstanding loan balance then you owe the remainder. If you cancelled your insurance or let it lapse for non-payment then you are already in default on the loan just has if you had missed payments. Per the terms you signed the loan company can demand immediate payment for the entire outstanding balance on the loan and start whatever processes it needs to collect that money including its legal fees to collect the money. All of this will affect your future insurance rates and your credit score. In most but not all states things like credit rating, insurance performance (cancellations, non payment, length of continuous insurance etc) will affect any insurance premium or loan interest in the future. You need to be upfront with everyone, take your financial hits and move on. It will only get worse, You see a lot of this issue. The lesson here is don't by more care than you can afford and insurance payments are every bit as important as your car payment. They are not an option. Never buy a car that puts you under water. That is you owe more than the car is worth. Generally this means putting down some kind of reasonable downpayment (my personal guideline is at least 30% of the purchase price of then vehicle) , never finance a new car for more than 4 years or used car for more than 3 years unless it's a vehicle that holds value extremely well like a new Mercedes. If you the find the payments plus the insurance are exceeding your budget, time to sell it and buy something with in your budget before trouble hits. Just because someone offers you a car loan with a 1000 down and finance the rest, doesn't mean you should take it. In fact you should run. This guy cares more about his commission than your financial well being. Unlike buying a house which is usually an appreciating asset, a car is a depreciating asset or expense.
Wiki User
∙ 11y ago
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How does FDIC insurance work?
The FDIC provides to $200,000 of insurance per bank account. This means that if the bank goes under, you will still have your money. If you have more than $200,000, you will need to put in in multiple bank accounts.
Is a bank draft needed to purchase home insurance?
A bank draft is your choice of paying for the insurance, you don't necessarly have to pay your insurance through your bank, there is several different payment methods.
Difference between banking and insurance?
A Bank is an organization that provides banking services like bank accounts, credit cards, loans etc. to the customers. Whereas, an Insurance Company provides Insurance. The main difference between a bank and an insurance company is the fact that it is not a bank. It provides insurance services to the citizens of India and it does not provide services like bank accounts, credit cards etc. to customers
Does mortgage insurance protect the bank's interest on a foreclosed loan?
Mortgage insurance protects a lender from loss, subject to contractual limitations between the bank and the mortgage insurer, if a borrower defaults. A bank that is forced to foreclose on a property due to a borrower default is still at risk of losing money since the mortgage insurer covers only a specified percentage of the original loan amount, typically 20% to 50%. Mortgage insurance will mitigate losses incurred by a bank due to a foreclosure but does not fully protect the bank from losses.
How does government sponsored deposit insurance affect your decision deposit money in a bank?
If the deposits in one bank are insured by the government sponsored deposit insurance whereas, in another bank this insurance is not available, it means that in case the first bank goes bankrupt, the government will give me my hard earned money that I put into my account with that bank, whereas it won't do anything if the other bank that does not have deposit insurance goes bankrupt and I stand to lose my hard earned money. So, I will deposit my money only in a bank that has the FDIC insurance on deposits available.
Do you have to pay the bank back for a vehicle if it gets wrecked and the bank pays it off?
Yes, unless the amount of the loan was covered by the insurance.
What if i wreck my vehicle and it's not paid for?
Drivers are required to have insurance. If you wreck your vehicle, the insurance company will pay for it. If you are driving without insurance in a vehicle that is not paid for, you still are obligated to repay the money you borrowed to buy the car. It is not the bank's fault that you wrecked the vehicle.
What if you wreck a car without insurance and owe the bank payments?
Then you still owe the bank.
What happens if you have a wreck without auto insurance and still money to the bank?
You'll be ticketed for driving with an invalid registration and driving without insurance, and you still owe that money to the bank.
How does FDIC insurance work?
The FDIC provides to $200,000 of insurance per bank account. This means that if the bank goes under, you will still have your money. If you have more than $200,000, you will need to put in in multiple bank accounts.
What is a 401 unauthorized type of bank account?
A 401 unauthorized type of bank account is a bank account that is not insured by the FDIC. Which is the Federal Deposit Insurance, which is an insurance company that guarantees that if the bank goes under you will still be able to access any money that was deposited into the account.
If a car was wrecked just before it was to be repossessed is it legal to collect the insurance claim and then turn the vehicle over to the bank?
You can collect it if you want, because the lienholder is going to charge you for not having insurance for as many months as they can, and the amount of what it will cost to get the vehicle repaired. I say give them the check, you will owe less.
Can a person let a wrecked truck get repossessed without any monetary issues?
That would be a particularly bad plan if you hope to keep a good credit score. The bank would have required you to have enough insurance on the vehicle to cover the replacement. If you didn't, you are financially responsible for every dime that is outstanding on the loan. If the truck is wrecked, the difference between the debt and the value is your responsibility.
What if you return a wrecked car back to the carlot its up for repo can you go to jail?
No, debtors prison no longer exists(With this economy thank God) so unless you wrecked it purposely your good there. However if you had a loan on the car, you should of had full coverage insurance that would pay for at least most of it and most dealers require gap as well which would continue paying the car off after the insurance. If you did not have insurance and gap, then you will be responsible for the cost of the car, even if it is ropo'd. You can file bankruptcy if you cannot afford to pay for the car however, if your not paying for just because you wrecked it that isn't really fair to the lender. They can also Levy your paychecks and or bank accounts for the funds to cover the car.
How do I get rid of this car when the bank won't release the title to the car I paid the bank and the bank said I owed the for insurance on the car.I paid insurance and was not aware of any other?
Find out from the bank the days that they provided insurance. Then call your insurance company and get copies of your declarations pages from that time faxed to your bank. Once your bank has proof that you were insured elsewhere they will forgive the debt for the insurance and release the title.
What it mean when a bank assign themselves on your home owners insurance?
It means you still owe them money. You still owe the bank for the house so you can not by law take them off the policy. It is not really your house until you pay them off. A bank or lender will assign themselves as a loss payee on a home insurance product whenever the homeowner/borrower fails to do so. The bank or lender does this to protect their loan in the event of a property loss.
What kinds of bank accounts are available at State Farm Bank?
State Farm is not a bank and does not offer bank accounts. State Farm is an insurance company and can help you to get various kinds of insurance products such as automobile or home insurance.
