0
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.
Wiki User
∙ 15y ago
Add your answer:
Earn +20 pts
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 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.
How do you finance buying back a totaled car?
Home equity loan perhaps. No bank is going to finance a totaled car.
What happens to a totaled car after the insurance co pays you for it?
Some insurance companies will sell the car back to the owner. Others sell the totaled car to a salvage yard.
If an accident is your fault and your car is totaled do you receive any money for your car?
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.
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 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.
Can you claim on gap insurance even if you are not short?
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 car is worth $17,000. If you have a covered loss and it is determined that the auto is totaled, the insurance company pays to the loss payee (loan company/lien holder) $17,000 because that is what the car is worth now. The gap policy would pay the additional $3,000 and pay off the loan. If you didn't have gap insurance, you would stay have to pay off the $3,000 even if the car was totaled out.
Who pays the loan if a car is repossessed?
The one who BORROWED the money and/or the on who COSIGNED the loan.
Does gap insurance cover if your behind on car payments?
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.
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.
Who gets the check if your car is totaled?
You, if you own the car outright or whatever institution carries the loan, if you haven't paid it off.
