Jun
25
If your in an accident and the insurance totals out your car, does the financing company get the money?
By
Raya asked:
I was in a bad accident and the insurance company wants to give the financing company the check for totaling out my truck. Should I get the money? and just keep paying the company?
I was in a bad accident and the insurance company wants to give the financing company the check for totaling out my truck. Should I get the money? and just keep paying the company?
Help me please, I’m not going to have a car anymore they do this.
6 Comments
June 27th, 2009 at 10:00 am
the money goes to the lein holder in this case the finance company… if you owe more than the settlement amount you will have to pay the difference…if you get more than is owed on the car they must cut you a check for the difference
June 29th, 2009 at 6:36 pm
The money and or check will always go to the lien holder and there are no exception to the rule.
June 30th, 2009 at 11:54 pm
The car was the collateral for that loan, once the car is gone the loan has to be settled, its as simple as that.
July 4th, 2009 at 1:09 am
The give the finance company the amount the is owed on the loan. So say you owe $8,000 and the totaled the car $9,000 the finance $8,000 and you $1,000.
Talk to your insurance company about it so they do not give more then they should to the finance company
July 6th, 2009 at 5:47 pm
The finance company gets the money.
If the settlement amount is more than your loan amount, you will get the remaining amount.
Example.
Loan Amount $12000
Settlement amount $15000
Finance co gets the $12K and you get the remaining $3K
July 8th, 2009 at 6:03 pm
First off – the car is tecnically not yours. The bank leant you money to buy the car
Second – if you take the money and keep paying the lien holder each month – you’ll be paying interest, which could mean you’ll end up with less money then what you got from the insurance company
So just let the insurance company pay the lien and if there is anything left over you will get the remainder