What do you do if the insurance for a totaled car does not pay off the car loan?

What do you do if the insurance for a totaled car does not pay off the car loan?I faced the same thing about a year ago. The insurance company did not want to give me what was needed. I got on-line and found many cars that were just like mine and displayed them that my car was worth more than they were wanting to give me. They still did not want to give me what the car was worth. So I went to petite claims court and filed suit on the driver of the other car. The person’s insurance has to represent them. Also go and look at the comps that the insurance company are using for your car to see if you can substitute the car for what they want to give you.

 Ultimately it is your responsibility that you either made low payments, took out a very long loan, or picked a car with high depreciation. The insurance company is not liable for the inflated amount you owe–only what the car is worth.

 The insurance company will only give you the value of the vehicle, as per the “Kelly Blue Book”. They will also send an appraiser out to see what the condition of the car was, as in mileage, any previous harm.
If the accident was another driver’s fault, you have to sue him and/or his insurance company for the remaining balance.Whatever you borrowed to obtain the vehicle wil always be more than the car is worth. You have already lost money on it as soon as you drove it off the car lot. But do your research. Go online for “Kelly Blue Book”, and get the estimate of the car’s value. If it is more, then dispute it with the insurance company. Print the page out.

 When you bought the car fresh or used from the dealer you had the option to purchase something called GAP INSURANCE from them (the Dealer, not the insurance company) for your exact situation. If you did not have enough equity in your car for the insurance pay off to cover it AND did not have gap insurance. basically you are screwed and responsible for the rest of the loan amount car or no car. Some people believe Gap insurance is a rip off so they do not suggest it to you and some just don’t know what it is. They do not need to be selling cars. Not fair but the way of life. Father is an insurance sales man. I also had a damsel hit me I had GAP insurance and she did not. She still had to pay off the balance on the loan even tho’ she did not have the car. The courts won’t do much because you had the option to purchase gap insurance and you did not, it does not matter that you did not know.

Can you stop paying car insurance on a car with deep throated motor and proceed to pay off loan to avoid voluntary repossession in Fresh York?

If your loan agreement requires you to carry ins (most do) and you drop it, then you will be in default of the contract. You better make SURE the payments get to the lender PROMPTLY so they dont take a 2nd look at your record when the ins. co. tells them you dropped the ins.

If you volunteer a repossession do you have to pay off your car loan?

YES, you have to pay off the loan. You have agreed to pay the lender X number of dollars for X number of months in comeback for letting you use X number of dollars to buy a car. Once the car is sold, the sale price is deducted from the balance due and you still owe that amount.

Can you sell a car when you still have a big car loan to pay off?

As the vehicle proprietor, you can sell the car whenever you choose. You are liable for the car loan. If you are selling the vehicle for less than the loan (especially when you are upside-down on the loan – you owe more than the car is worth), you need to pay the difference to your lender. When trading the car in to a dealership (in effect selling it to the dealer) the dealer should treat the loan payoff details. You need to inform both your lender and your state DMV that the vehicle is being sold. The lender will release the lien against the vehicle after they receive payment from the dealer. Selling to another individual is firmer. It is best to work with your lender and find out how they choose to treat the transaction. You will need to supply the buyer with a clear title, but you can’t get a clear title until you lender releases the lien on the title, which they won’t do until they receive payment. Many lenders have a standard way of treating individual to individual vehicle sales. For example, for a car with a loan greater than the sale price of the vehicle: In Michigan, go to either a Bank or a Credit Union and get approved for a loan around the difference in price you are looking at. Then, when you find a buyer and agree on a price, you will go to the bank or credit union, and get the loan. You and the buyer must go to whoever holds the lien on your car, and you both pay your amounts owed on the car. The lien holder will sign the title releasing the lien, and you are free to take the title in to the DMV. It varies from state to state, but this is how it is done in Michigan.

If you have utter coverage and total your car will the insurance pay for another car even tho’ the one you crashed wasn’t paid off yet?

noNo, the insurance company has a responsibility to the lienholder very first, then you get the balance of the settlement based on the local market value of your car. Insurance companies are not responsible for purchasing you a fresh car and the settlement is based on the value of the car you had an accident in. The settlement is not based on what it will cost to buy another vehicle.

Will paying off a car loan increase your credit score?

Response .
No, most likely not..
Credit scores are calculated based on ALL the information demonstrating in a consumer’s credit file at the time they are requested. So one puny chunk of information needs to be evaluated in relation to the entire. However, there is nothing about paying off an installment loan, whether early or on time, that would cause your scores to rise. The same is not true regarding revolving accounts (like credit cards)..

Do you still have to pay off the loan once your car is repossessed?

Response .
In almost all cases, YES.At the very least you will pay the difference in what the car sells for and the balance on the note.

How long do you have to pay off a car loan?

Reaction .
When you took out the loan for the car the banking institution worked out how many months and for what amount the payment would be each month. If you have lost a job or are inbetween jobs, were ill, were in an accident, then if you are fair you can talk to the bank manager and they will usually be fairly willing to adjust your loan payments. The smaller the loan payment the longer it will take you to pay it off because of the interest applied on the outstanding loan. So, you could spend an extra duo of years paying this off. Banks don’t want the vehicle, they want their money..
Good luckMarcy

Does paying off your car loan improve your credit score?

There is no direct benefit to your credit score to pay off an installment loan early, but indirectly it could help. Installment loans are established by a contract which details the amount of money borrowed and the terms, which is a monthly payment promise over a specific period of time. For auto loans, this is typically 24-60 mos. Lenders are particularly interested to see if borrowers understand this concept; that they are to pay their payment, on time, over the length of the contract. Therefore, you receive no “credit” for paying early. However there are indirect benefits. If your debt geyser goes down, you are less likely to have credit applications denied, and a denial of credit is a bad mark on our report. There are other reasons to pay off an auto loan. Most likely you are paying more interest on the car loan (Five, 6 percent or more) than the interest you get if you leave money in a savings or checking account (less than 1 percent) , so if you have money laying around, using it to pay off your auto loan is like investing that money at the same interest rate as your car loan. Who wouldn’t want to make five percent interest on their money? This rule applies generally to all loans – if you have money you don’t need for an emergency, use it to pay off your high interest loans rather than let it sit around in an account that pays little or no interest. Comments: .

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I recently bought a fresh car and about 6 months after applied for a credit increase on one of my cards. They infact denied my request because I still had a reasonable amount to pay off on my car. And this denial can lower your credit score. So if I had paid off the car then they would of accepted my credit increase and my score would of went up. The score itself might not go up because of the type of loan that it is but mortgage companies and other credit card holders will see that you have the funds available to pay off your bills/loans on time. .
It is especially unwise to owe money on a depreciating asset, and cars depreciate rapidly. You will soon end up owing more on the car than it is worth. Instead, pay cash for a car you can afford today. If you don’t have debt payments, you can invest your money and some day buy a better car, because you will have money.

How do you find out if insurance will pay the car off if your spouse dies?

It is unlikely that a car loan has death benefits stipulations included. The best option is to contact the insurer and the lender ask about the terms of the loan agreement and the insurance policy. Or simply read the original agreement made with the lender and your auto insurance policy. Actually, it’s not at all unusual for a car loan to have Credit Life and Disability fastened. The lenders make a lot of money on these policies and I have never gotten a loan where this was not suggested.

If you pay off your car loan will this increase your credit score?

Response .
It depends on how long you’ve had your loan. I payed my car loan off the same year I got it and it didn’t do anything to my credit score because I hadn’t had the loan long enough. If you’ve had your loan for several years and you’ve made almost all of your payments on time then yes it would improve your credit score because you are reducing your amount of debt and/or creditors.

What are your options when your financed car was totaled and you are not at fault but your insurance isn’t suggesting you enough money to pay off the loan?

Response .
This is not an uncommon occurrence. You might be stuck with a loan balance on a car that you can’t drive. The next time you finance a car with little or no down payment you might consider getting “gap” insurance to cover the difference inbetween the vehicles “actual cash value” and the amount you owe on it. This is an especially big problem when dealers suggest to “pay off your trade no matter what you owe” when buying a fresh car from them. You can attempt to make your case by getting evidence that the car was truly worth more than what the insurance company is suggesting or you can get a lawyer. Good luck.

Can dealerships pay off your car loan when leasing you a fresh car?

Some will make the arrangements, but you may be better off treating it yourself to maintain the security of your credit.

What do you do if the insurance for a totaled car does not pay off the car loan?

Will car insurance pay for a car totaled in a DUI accident?

Reaction .
It should. If the “at fault” vehicle is insured, it’s supposed to cover the victim’s vehicle 100%. If the “at fault” vehicle has comprehensive and collision insurance that insurance is supposed to cover the at fault vehicle up to the deductable amount.Note that the toasted driver will liberate his insurance and be required to get the VERY expensive DUI “insurance endorsment” since he/she is now in the highest risk bracket..

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BTW, when a inebriated driver causes a collision it’s not called an “accident”. Accident is when things just happen. Driving buzzed is the CAUSE of the collision and as such the collision is not called an accident. Call it a wreck, crash or just about anything else that takes away the implication of a random act.

How do you pay off the car loan of someone else?

There is three ways to do this assuming that you are purchasing the car. You can call the Loan company and ask for the “pay off” amount and pay it in a lump sum or you can assume payments via a contract inbetween you and the loan holder. In this contract you promise to pay the loan on schedule while keeping the loan is their name. This can be risky for them. You can also assume the loan through the loan company. This benefits both of you by getting them off the loan relieving them of liability and it promotes your credit. As far as the title is worried it can be switched to your name regardless of the name on the loan. If the loan is still active there will remain a lien holder (the loan company) on the title. Y-THINK-Y

Can you make your auto insurance pay you back for loan payments you made on a car they proclaimed totaled?

Response .
Your insurance owes you the value of the vehicle minus your deductible. If you owed the bank more than this, you are responsible for the excess.

If your car is totaled and you still owe on the loan do you have to pay off the loan with the money or can you just proceed to make monthly car payments on the car you no longer have?

You can proceed to make payments if you want. All the bank cares about is getting their money. You should check with them just in case, the rules could be different with your loan. The insurance check will be made out to both the borrower and the lender and will require both signatures. The lender will be the person who takes final possession of the reimbursement and will apply it to the outstanding balance of the loan. If there is a deficiency and there very will may be depending upon the depreciation of the value of the vehicle, penalties, etc. the borrower is responsible for the repayment of such costs. ResponseCall and ask the people who you pay your payments to If you have GAP insurance on the car, then it won’t be a problem.

How do you get another car loan or will you have to wait until the loan is closed if you have a loan on a car that was totaled and insurance and GAP insurance will pay the total loan balance?

Yes surely you can get another. I was having the same query so I searched for it on net and came across the site AutoFinance-EZ. Interest rates are determined by the actual lenders and are influenced by several factors, including the severity of credit problems, the amount of down payment, and the degree of credit risk. Your auto loan accomplished will explain these factors, and tell you exactly what your interest rate will be. .
If you are not sated by the deal you are getting for a 2nd loan on your car, attempt looking for a payday loan.

What would you do if you have no car insurance and got into a car accident but havent embarked paying off that fee and then got into another car accident where the car was totaled and it is your fault?

Response .
You should stop driving instantly. It is illegal to drive any vehicle without meeting your state’s Financial Responsibilty Requirements..
Response .
Stop driving! If you still didn’t have insurance when you got into your 2nd accident, they’ll most likely suspend your license and if you’re then caught driving they’ll throw you in jail. If you can’t afford insurance you can’t afford to own a car!! Based on your driving record thusfar you need total coverage!!

When your car is repoed and you pay the loan off how long do they have to give the car back?

Response .
they usually do not give it back. once they take it, it is theirs.

What should you do if a co-signer on a car loan totaled car with no insurance now you are paying the loan?

You should sue the co-signer. Even however you may be the primary person obligated to pay the loan, he is responsible to you for totalling your car. You still have to pay the loan company because you took out the loan; but the co-signer caused the loss. You won’t be able to force the loan company to take payments from him however. Getting him to reimburse you will be your problem.

If my car is totaled and not paid for will your insurance pay for it?

Car Loans .
In most cases, insurance companies are only required to pay up to the book value of your car. What this means is that if you owe $15,000 on a car loan and the car is only worth $12,000, you will still be held responsible for the remaining balance which in this case would be $Trio,000. This is also known as being upside down. If you purchase GAP, a.k.a a debt cancellation contract, then you would not be held liable for the remaining $Three,000. This is why it pays to purchase a car that has good residual value meaning it shouldn’t depreciate much swifter than you are able to pay off your loan.

Your friend sold you his car take over paymentsHe took the car off his insurance you insured the car and then totaled it but you are not on the title Will your insurance company pay for it?

Reaction .
As long as you have the title that he signed off of it and you signed on and you have insurance on the vehicle it will be covered.

Your car is a total loss and pay off is about half of the amount of your loan you carried some from a prior car will your GAP insurance cover the majority or all of the remaining balance of the loan?

You will need to read your GAP insurance information. Like car insurance each plan is different. Some GAP insurance plans state they will pay 100% of the “resale” value. Others state 125% (meaning the current resale value of your car plus 25% above that). Others state 100% of “trade-in” value..
Bottom line – read the insurance plan document you got from the company, or visit the car dealership you bought the car from and pick up a pamphlet..
Good luck to you!

Will car insurance pay if totaled car?

If you have total coverage they might pay you the lowest market value fo your car. They will deduct your deductable.. Insurance companies are out to make money so they will find the cheapest way out

If your car is out for repo but has been totaled in a car accident are you still repsonsible for the payments or will the insurance company pay off?

Your insurance will only pay off what the blue book value of the car is, whether that’s enought to pay off the vehicle is unknown to me. If you owe $7k and insurance says the car is worth $5k you owe the $2k difference.

What do you do if the insurance for a totaled car does not pay off the car loan?

Is there a penalty for paying off car loans early?

Sometimes. You’ll have to read the lender/borrower agreement or contract. It’s in the petite print..
yes and not just car loans

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 fresh option in insurance of the fresh 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.

After you’ve signed the papers at an auto dealership and driven the car off the lot the finance company wont cover you for the loan and the car gets totaled and its insured who pays for the vehicle?

Next time you post a question, read it over before hitting “save” (your question is a little hard to understand). Once you sign the papers for the car, it is yours. If you get in a car accident and the car gets totaled, the insurance company for the at fault driver is responsible to pay for the “fair market value” of the car. If you are at fault and you have collision, your insurance company will pay you fair market value less the deductable. Please be aware, if your loan was for Ten,000 but your car is truly only worth 8,000 then you will be stuck paying the extra Two,000 (unless you purchased gap insurance from the loan company)

What if my car was totaled in an accident the insurance pay off the debt?

Only if you carried GAP insurance will it pay off what you owe to the Lienholder. If not then they will only pay what they valued your car to be worth which may or may not be enough to pay off the loan.

I had no car insurance and the car is now totaled and I still owe on the loan do I have to repay the utter amount or can I set up arrangements to pay a lesser amount?

When you got the loan, the company which you took out the loan with paid the utter sum to the car dealer. They need to be repaid that sum. Your arrangement was that you would pay a certain amount each month/week, and they would very likely see no reason why you should pay them less. They entered into an agreement with you, and will most likely expect you to keep to the terms of it. Depending on how long is left until the loan, at present rates, would be repaid – they might agree to lodge for lower payments for a longer period…. but I would be sceptical that they would lodge for lower payments for the same period. The best thing to do is – using a phone which they would not be able to connect to your name, ring them and ask. Make a note of any person’s name that you speak to, especially if they make an suggest which you think might be acceptable. They will most likely be ready to talk about extending the period, and you have nothing to lose by asking anonymously.

What is the Fastest way to pay off a car loan?

As much as possible as soon as possible. Truly, the more you pay above and beyond the required monthly amount should come directly off the balance without interest. If your loan is not structured in this way, then you should refinance with a fresh loan that lets you pay extra amounts toward the premium whenever you want.

Car loan was written off do you have to pay it?

Writing off debt is an accounting entry to acknowlege that the asset they have (the loan) is not performing and that investors/readers of the financials, should not consider it valuable..
Again, it is a required accounting entry – it does not effect your debt to them, discharge it or reduce it in any way. You still owe. And they will…in fact must (to sate those same investors and regulators that read those financials), attempt and collect it or get some value for it.

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 finish open loan regardless of the amount paid by the insurance company.

Do you still have to pay your car insurance if your car is off the road?

I have taken my caroff the road for the winter. Do I still need to pay insurance

Car loan written off and you still have car do you still have to pay it?

most cases no.. the company will write it off to the IRS as cancel credit/debt.. Then you will become responsible for taxes on the balance owed. Which the IRS will send you a 1099-C If you ever receive one paid it in utter, interest and slew fee will apply after a due date..

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 inbetween the market value and the loan value.

When you pay off a car loan and you already have the title what do you do?

Get the lenders name liquidated from the ownership. **actually the lenders name will not be on the ownership papers as anything other than “seller”, once your loan is paid out, you have no worries, the car is yours. The bill of sale, ownership and finance papers should demonstrate you the term of your finance, monthly payment, interest rate, number of payment, etc… when the terms have been carried out, you will be the only legal possessor of the vehicle

What do you do if the insurance for a totaled car does not pay off the car loan?

If your car is totaled do you still have to pay off the insurance policy?

No, simply because there is nothing to be insured any more, your car is gone.

How long can an insurance co take to pay for your totaled car?

The general response, absent a contractual or statutory requirement is, “a reasonable time”. When a car is determined to be a total loss, it essentially means that the insurer has determined that the cost of repair exceeds (usually, some statutory) percentage of the actual cash value of the car. In that example, the law requires that the be announced to be a total loss. The time consuming part of that process can be in determining the actual cash value of a car of like kind, quality, and other features. While there are commercial guides to help in that determination, often there is a period of negotiation with the possessor as to the final value. Many States provide that once a claim has been resolved by agreement as to the value, and all necessary documents have been signed (in this case, proof of claim, title certificate, and other documents that the State or the insurance company may reasonable require), payment must be made within 30 days. However, the period may be shorter or longer and State law will govern.

What happen when you pay off your monthly car insurance?

If you would like it to proceed then you should make the next monthly payment.

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.

Does paying off a car loan decrease your credit score?

No you should see your score budge some, paying off your balance on your car loan only decreases you debt ratio which in turn increase your score.

Can you pay your car loan off while its included in your bankruptcy?

If you are in a Chapter 13 plan, you have to get permission to pay off a vehicle or sell a vehicle that is included in your plan.

Are used car loans usually hard to pay off?

It depends on how much the car costs, your down payment, and how much you are making. If you have a good plan to pay it off, it should not be too difficult.

Do you have a right to pay off your loan in total when car is repoed?

Up to the lienholder but once you default they are entitled to the security and there are expenses involved as well to resell depending on who, amount, value of car and how far along they are in that process will determine it for them. Obviously they will cut their losses as much as they can.

When you pay off a car loan should the lien holder send you CAR KEY?

The lein holder does not have the key to your car. They will have a title that you will be sent.

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

Yes. Hopefully the car is insured, and the insurance money recieved will cover the loan of the car.

Can you pay off a car loan without paying interest?

If the total interest expense is included in the loan balance, theyyou’can’t pay off the car without paying interest.

Can you pay off a car loan without paying interest-?

Yes you can, If you pay extra with every payment. Or pay the fullloan off all at once.

What insurance covers pay off on car in case of death?

This is not auto insurance but life insurance. What you need iscredit life in conjunction with your auto loan.

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