Will you receive the money if your car is totaled out by the insurance company and you still owe payments?

Answer 1

Seeing that there is a "Lein Holder" (the financing company that you went through) on the registration, whatever is owed on the vehicle will be paid off first and if there is any funds left (which I doubt there would be as most cars that are financed are "Upside down" in their loan - meaning that you owe more on the car than it is worth) I know it sucks! I went thru this many years ago, but I was lucky or the finance manager felt sorry for me. I had the car 1 month and it caught on fire while my husband was driving it. It took them forever to handle the claim. First they denied the claim stating that he was "driving it" when it caught on fire and he wasn't on the policy. Well, first of all the car didn't catch on fire till after he had parked it and went up the street to call me from the payphone (this was way before cell phones were thought about. So I had to get a letter from the fire dept. stating that the car was legally parked, doors locked etc. Then they finally sent an adjuster out to look at it (mind you it took them 4 months from the day it caught on fire till they got an adjuster out there. He opened the car door, looked like he was going to puke and checked off "TOTALLED" on the paperwork (because it was sitting soooo long with all that water that the fire dept. had poured inside there was mold and mildew all over. So anyway, the finance company took what the insurance company paid as payment in full as I hadn't even made my first payment on it. Hope this helps!