answersLogoWhite

0


Best Answer

The insurance company would not be interested in repossessing a car that has been completely demolished. The insurance company will pay over any damages to the loan company since it has a lien on the car. You would receive any amount remaining after payment of the car loan. On the other hand, you will be responsible for any remaining balance owed on the car loan. That is why "gap insurance" is important for a financed car. Gap insurance pays when the amount of compensation received from a total loss does not fully cover the amount the insured owes on the vehicle's financing.

User Avatar

Wiki User

โˆ™ 2018-04-02 15:05:00
This answer is:
๐Ÿ™
0
๐Ÿคจ
0
๐Ÿ˜ฎ
0
User Avatar
Study guides
๐Ÿ““
See all Study Guides
โœ๏ธ
Create a Study Guide

Add your answer:

Earn +20 pts
Q: What happens if your car is totaled and you are paid up on your insurance but not on your car loan will it be repossessed?
Write your answer...
Submit
Related questions

What happens if you Car title loan in default and car is totaled?

Typically you need a car with insurance to get a title loan. If your car is totaled, the loan company are entitled to that money since they hold the title for your car.


What happens to a title loan if the automobile is totaled in an accident?

you pay money


Who pays remainder of loan when car is totaled?

It depends. if you have GAP insurance, the insurance company will pay the payoff amount. If you do not have GAP insurance, it is the holder of loan's responsibility to pay off the complete open loan regardless of the amount paid by the insurance company.


Car totaled insurance value car at 16000 and loan amt is 12400 can you use your gap insurance to pay off car loan?

If they gave you 16000 on the car, you would not need gap insurance since your loan amount is 12400.


Do you have to pay off the car loan if you have totaled the car?

Yes, if your insurance company will not pay it all.


What happens to title loan cars when they are repossessed?

They are sent to an auction and sold.


If your house is repossessed due to a secured loan and there is not enough equity to pay the loan what then happens to the secured loan?

You will be liable to pay the debt outstanding.


What can you do if your car was totaled but the insurance didn't pay the complete amount and you can't pay the rest because you needed a new car and now it's considered repossessed on your credit?

If you were not at fault in the accident, you can sue the insurance company for the balance on your loan. If you accepted the payment from the insurance company and signed a waiver from future litigation, you cannot do anything but pay the debt yourself.


Does insurance help with rental when car repossessed?

I've never heard of an insurance policy that covers repossession. Remember, the car doesn't actually belong to you -- it was repossessed because you failed to honor the contract of repayment of the loan to buy it.


Can you refinance a car loan after the car has been totaled and repossessed to get lower payments?

NO. You no longer have collateral to secure the loan. Unless you are willing to use real estate or another vehicle that is fully paid off and owned for security.


What happens if you pay your car loan so it doesnt get repossessed but you dont have insurance?

Your car finance company will add their own insurance that covers their vehicle, but not your liability. ANd it will significantly increase your payments. It would be so much cheaper and better protection for you to find your own insurance. Park it until you get insurance.


What does Gap insurance use for in Illinois?

What is Illinois gap car insurance? Is insurance you can purchase to cover the gap between the cost of repaying your car loan and the amount the insurance company will actually give you for your totaled car.


If your car was totaled will the check come in your name if there is a lien on it and you released the car to the insurance company?

Loan company gets paid first if you owe more then the insurancwe pays you owe the balance, if insurance pays more then loan you get the differance.


What do you do if your motorcycle is totaled in an accident with no insurance but you still owe on the bike?

you still owe on the motorcycle. that's why banks require full coverage at the time of the loan-so that they will get their money. Since there is no insurance company, YOU are responsible for paying off the loan.


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 between the market value and the loan value.


If you are in a car accident and the car is totaled does your car loan get paid off through insurance?

Not unless you have the new option in insurance of the new car replacement. If your car is totaled, you will be paid the Blue Book price for your vehicle. This sum is the amount your vehicle is worth at this time. Any amount over this sum that is still owed to a car loan is still due.


Can your car be repossessed if you do not maintain insurance coverage on the vehicle?

An automotive loan usually contains a clause that says the loan recipient must maintain insurance on the car for the life of the loan. Usually, this includes not only the legal minimal liability insurance, but also theft, collision and fire insurance. If you are in breach of the loan agreement, your car may be subject to repossession, depending upon the terms of your loan agreement.


Who gets paid if a financed car gets totaled?

If a car with an outstanding lien gets "totaled" in an accident the insurance company will pay the finance company. Any amount left on the loan after the insurance payment must be paid by the owner of the car. Gap insurance purchased at the time of the loan will pay any deficiency.On the other hand, any amount left over after the loan has been paid will go to the car owner.If a car with an outstanding lien gets "totaled" in an accident the insurance company will pay the finance company. Any amount left on the loan after the insurance payment must be paid by the owner of the car. Gap insurance purchased at the time of the loan will pay any deficiency.On the other hand, any amount left over after the loan has been paid will go to the car owner.If a car with an outstanding lien gets "totaled" in an accident the insurance company will pay the finance company. Any amount left on the loan after the insurance payment must be paid by the owner of the car. Gap insurance purchased at the time of the loan will pay any deficiency.On the other hand, any amount left over after the loan has been paid will go to the car owner.If a car with an outstanding lien gets "totaled" in an accident the insurance company will pay the finance company. Any amount left on the loan after the insurance payment must be paid by the owner of the car. Gap insurance purchased at the time of the loan will pay any deficiency.On the other hand, any amount left over after the loan has been paid will go to the car owner.


Can a car be repossessed in California without a lien being placed on the title?

IF the loan is perfected, it can be repossessed. If you have signed a loan contract with the vehicle specified as collateral for that loan, it can be reepossessed if the loan is in default.


Can your driver's license be suspended for not paying the balance of a loan after the vehicle was repossessed?

No. Absolutely not. Your driver's license cannot be suspended for not paying a loan or the balance of a loan, repossessed or not even if you get threats from the loan company.


If you were involved in an accident and did not have full coverage but the bank had put forced insurance on the loan will that insurance cover the totaled car?

That insurance will probably cover the BANKS interest in the vehicle and any liability that may be assigned to it, but little or nothing for you.


Will gap insurance pay off the balance of your loan if your vehicle is totaled?

In California it is normally necessary for you to currently have comprehensive and collision coverage in place at the time of the accident for your gap insurance to take effect.


What can you do if your car is stolen and you still have a loan on the car but your insurance does not cover theft and they recover your car totaled?

YOU pay off the loan like you agreed to in the contract. You likely agreed to have ins. that covered theft also. You should have had full coverage on a car with a loan on it. Sorry, you have to pay the loan off and now you own a totaled car! Comprehensive coverage isn't that expensive and would have covered theft.


Will insurance pay for a repossessed car?

Of course not! It wasn't stolen or wrecked, it was taken from you for failure to pay on the loan!Be sure to cancel the insurance.


If two people have a car loan but only one person has insurance and the car is totaled in a single vehicle accident by the uninsured person will the insurance company still cover the car?

if you have gico then no but any other car insurance will yes