0
What do you do when you total a car and still owe the finance company more than the retail value that insurance will pay and you have no gap insurance?
Wiki User
∙ 17y ago
I hate to have to be the one to tell you this, but there is not too much you can do. If you feel the insurance company's valuation is wrong, and the settlement is unfair, you could discusss your situation with one or more ATTORNEYS ["usually," a first visit is free]. Don't go to any attorney that doesn't offer free first consultations, as there are many who do. Otherwise, you're just going to have to make the best of a bad situation. In order to do that, I sugguest: 1. Discuss your situation with your finance company and, with a whole lot of luck, they MAY forgive PART of your note. 2. UNLESS there is a PREPAYMENT PENALTY clause in your loan note, take the ENTIRE settlement money and pay it ALL to the finance company. This gets your balance as low as possible. 3. TO PREVENT DAMAGE TO YOUR CREDIT RATING, AND a lot of continuing collection pressures, continue to make your payments until your loan is fully paid off. Not only will this protect your credit record, and prevent a lot of harassment, it is the right thing to do.
Wiki User
∙ 17y ago
Add your answer:
Earn +20 pts
What does the finance company do when a car is totaled and there is no collision insurance?
If the driver was uninsured or only had liability insurance, they would be liable to still pay the finance company back or face a lawsuit.
Can you cash a check written to you by your insurance company for a car that was totaled but still has remaining payments on it to a finance company?
Sure you can, but you're still responsible for paying off the loan to the finance company. If the check will cover the pay-off, give it to the finance company. If it doesn't, give it to them, anyway. It'll reduce your debt by that much.
Your car has been written off by your insurance company but you have decided to buy the car back and repair it however you will still owe 2000 pounds to the finance company where will you stand?
Your car has been written off by your insurance company but you have decided to buy the car back and repair it however you will still owe 2000 pounds to the finance company where will you stand?
Can a company make you pay the balance on a car if insurance do not cover it all?
Yes, You still owe the balance of any note owed to your Finance Company.
What happens if the car gets stolen and its still on finance?
You will still owe the finance company the balance of your finance note. Hopefully you have full coverage insurance. If you do have full coverage, the Comprehensive portion of your policy will generally pay off the finance company up to the insured limits (usually the remaining market value) of your insured auto.
Can finance company repo your car if your insurance lapses?
You usually have to have insurance in case you have an accident. The finance company can then retrieve the debt from the insurance company. If you do not have insurance then they will have to retrieve the debt from your other assets such as your house if you have one! If they perceive that you are a bad risk they may look at getting the car back if there is enough equity in it but they will still want any outstanding dues. Better to keep up the insurance. They may not know the insurance has lapsed unless you notify them.
Uninsured finance vehicle has been stolen Cancelled insurance because car was being repossessed by finance company?
You still have rights to recover the vehicle. The finance company may help you look for it if they're desperate enough to get it back. Even if your car was insured, you would legally have to payback the finance company for the car since you broke a binding finance contract.
Can a finance company repossess your car for no insurance but they knew the car had transmission and brake system problems.You got the insurance on the first like you said but still can't get it back.?
I believe all they can do is fine you for not having insurance
How do you find out if the owner still owe a finance company on the car you are buying?
how do you find out if the owner still owe a finance company on the car you are buying?
Can you keep your hail insurance claim money?
The insurance co. has contractual obligation to pay for your damages. It's up to you to fix your car. <><><> If you are still paying for the car, the finance company will require that you have the damages repaired.
If your new car was declared a total loss in an accident are you still responsible for paying the finance charges?
Yes if the amount your insurance company paid did not cover the amount you still owed on the car. You are still responsible for the difference.
Can your car get repo for no car insurance?
Yes, Almost every Auto finance note contains language that requires you to maintain "Full Coverage" Auto Insurance for the term of your finance note. It just part of the contract you agree and sign when you financed the car. This is to protect the finance company from a loss of the vehicle. Remember the finance company still owns the vehicle until you pay it off. Failure to comply with the insurance requirements of the finance note you signed constitutes a default on your loan subjecting the borrower and the vehicle to whatever remedies are at the finance companies disposal, including repossession. If you act quickly, Are not behind on your car payments, Get your full coverage insurance in place and pay the towing fees, Call the company and be nice with them and assure them that you understand your obligations with apologies for any oversight, Most finance companies will let you take the vehicle back and continue paying your note.
