got a question about car being totalled
03-08-2005, 06:57 PM
#12
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The money is still owed by the owner of the vehicle until the insurance company pays the bank, they won't pay the bank unless the bank gives them a guarantee of title. So the mixup could be anywhere along the line. I would have him call the bank and the insurance company and figure it out, it's the only way anything will get done, don't expect the insurance and bank to work it out all on their own without a little persuasion.
03-08-2005, 10:04 PM
#13
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hahahaha i deal with this stuff all day......
the bottom line is he probably still owes them money...here are some factors that would cause him to still owe money....
1)....the car was totalled , his insurance company pays book value on the car, not what his loan was for....thus leaving a balance due
2)...if he has gap insurance good, he needs to file a claim....
3)...if he doesn't have gap, he needs to pay the balance....
4)...anything after 30 days his credit will be marked...
he needs to ask his bank or creditor if they recieved the funds from the insurance co and if there is a balance owed..
the bottom line is he probably still owes them money...here are some factors that would cause him to still owe money....
1)....the car was totalled , his insurance company pays book value on the car, not what his loan was for....thus leaving a balance due
2)...if he has gap insurance good, he needs to file a claim....
3)...if he doesn't have gap, he needs to pay the balance....
4)...anything after 30 days his credit will be marked...
he needs to ask his bank or creditor if they recieved the funds from the insurance co and if there is a balance owed..
03-08-2005, 10:07 PM
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oh yeah and yes he is responsible for payments, whether the vehicle is totalled or not.....chances are this,
the bank has recieved the ins money, there is a balance...now after a certain time period, what the bank is going to do, is "charge off" the acct....thus leaving an unsatisfied balance....this will show up on his credit report and depending on the balance owed he will have a hard time getting even a Blockbuster Card......tell him he needs to pay it NOW!!!!!!!!!!!!!
the bank has recieved the ins money, there is a balance...now after a certain time period, what the bank is going to do, is "charge off" the acct....thus leaving an unsatisfied balance....this will show up on his credit report and depending on the balance owed he will have a hard time getting even a Blockbuster Card......tell him he needs to pay it NOW!!!!!!!!!!!!!
03-09-2005, 05:37 AM
#15
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Another factor at work here that should not be overlooked is his insurance premiums going forward. This fairly new car was totalled an the insurer paid out a substantial settlement. So his rates will probably rise significantly going forward. But he needs to consider that negative effect on his credit rating will ALSO affect his insurance premiums as well! If his credit rating is bad AND he just settled a large claim he might have a tough time getting any insurance in the near term without paying exorbitant high-risk driver premiums.
Andrew
Andrew
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