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?
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.
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?
Car totaled insurance value car at 16000 and loan amt is 12400 can you use your gap insurance to pay off car loan?
That's about it. The car is totaled. The money is still owed. If there was a loan, you'd better have insurance and if you are lucky, the insurance will cover MOST of what you still owe. Answer Your insurance co. is obligated by law to satisfy any payment up to the policy's limits. If there are money owed after that, you can sue the other driver for the money owed or be sued, whatever applies.
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.
You have had several things happen: You bought a car and as is the law requires told the insurance company who was financing it, and probably you have total loss or "gap" coverage Then you got into a crash that totaled the car The insurance company knows you have to clear your car loan, and because of the coverage type, your bank has to get the money So you have to take it to your…
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.
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?
What do you do if your motorcycle is totaled in an accident with no insurance but you still owe on the bike?
If you are in a car accident and the car is totaled does your car loan get paid off through insurance?
The Community answer is not entirely wrong. However, what is more likely to happen is that the finance company obtains "forced-placed" coverage on the car. This is physical damage coverage only and is designed to protect the lender's interest in the vehicle (because it is collateral for the loan). The premium for that insurance will be added to the loan balance. The premium for this kind of insurance is typically substantially higher than that for…
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.
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?
Can you make your auto insurance pay you back for loan payments you made on a car they declared totaled?
The purpose of gap insurance on an automobile loan is to pay off the portion of the loan that wasn't paid by your auto insurance company. If you the insurance company pays off the entire loan, there isn't a trigger to activate the gap policy and there isn't an amount to pay since it only pays the difference. Example: You buy a brand new car for $20,000. You drive off the lot and now the…
If you can't pay back the title loan from a pawn shop due to being totaled and you got a cut check from your insurance company, I suggest you use that check to pay off that loan to avoid a lawsuit because the pawn shop will not see that insurance check you got from the totaled car. If you don't pay them off and they know the car is totaled, then they will come after…
If a car loan is in one spouse's name only repossessed can they garnish the wages of the other spouse if their name is not on the contract only the insurance registration?
Yes they can, but it really just depends on your own states common laws regarding liabilities and married couples. Most states for all civil law intents and purposes consider a married couple as one entity, assets as well as debts of either are generally (community property) the responsibility of both, but this can vary depending on your state law. In most states if the property was purchased or financed after the marriage took place then…
Can your driver's license be suspended for not paying the balance of a loan after the vehicle was repossessed?
Since you have a loan you should be required by the lender to have full coverage insurance which will pay you the value of the vehicle. With out insurance you are still responsible for repaying the loan no matter what happens to your vehicle. It is not the lenders fault your car was stolen and wrecked...
Unfortunately, no. What gap coverage does is pay the balance on your car loan if your car is totaled and the insurance payment is not enough to pay off the balance of your loan. Quite often our vehicles depreciate faster than we can pay them off. Insurance only pays the depreciated (blue book) value, so sometimes what you will get from your insusrance company doesn't pay off the loan.
What happens to a loan on a car when the loan holder dies and there is no cosigner or insurance on the loan?
A car is not totaled in a chapter 13. A car may be totaled while the owner is in a chapter 13. If the car was fully exempted, nothing happens. If you need to buy a new car, you will have to get permission from the bankruptcy court after you file a specific purchase agreement (car loan) which should not seriously affect your plan payments. Why are you not asking your lawyer?
What happens if a car was totaled and you're still paying on the car loan but couldn't afford payments anymore and bank threatens to repo car and take legal action but theres no car?
When you have a car loan you are required to have insurance to cover that car in almost all states. So, when the car was totaled you should not have had to continue making payments on it as the insurance company should have paid the bank for the car. Did you not report the accident, or were you under-insured? Answer This is not true. While some insurance companies offer guaranteed replacement cost most do not…
You will only get the book value of the car at the time of the accident. It may not be enough to replace it, but that is how insurance works. If you have GAP insurance through your bank with your loan, then that insurance will cover the difference in replacing that particular make/model of car. This does not pay enough to replace the car. It will pay the remainder of your loan after the insurance…
That depends on what insurance coverage you have. If you bought only the state-required liability, NO. If you have full coverage you will get the book value of the car minus your deductible. If you have a loan on the car, this will probably not pay it off and you will still owe the remainder unless you also purchased "gap" insurance. Gap insurance will cover the remainder of the loan except for the deductible.