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As you know Failure to maintain the necessary coverage is a breach of the contract that you signed with the finance company.
You were responsible for the note and you are still liable for the unpaid balance.
Usually the finance company will give you the opportunity to pay off your debt if just you ask them. If you fail to pay off the debt then the insurer will have little option left but to sue you in court for the unpaid balance and breach of contract. They may be able to recoup their loss by way of a court judgment and any available property or salary liens.
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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.
What happens to your title loan if your vehicle is stolen and wrecked?
Since you have a loan you should be required by the lender to have full coverage insurance which will pay you the value of the vehicle. With out insurance you are still responsible for repaying the loan no matter what happens to your vehicle. It is not the lenders fault your car was stolen and wrecked...
What happens to the loan when the car is stolen?
The insurance should pay the loan (if your lucky it'll pay all of it) If there was no insurance then you still have to pay for the loan. I had a car stolen and I had to keep paying for it until the insurance finally paid it off and I was left with $50 in the end to get a new car with.
What happens if your car is stolen and you still owe on the loan?
If the vehicle is/was encumbered by the original loan then it should be insured. If there is no insurance or the insurance does not cover theft the purchaser is still responsible for the full amount of the loan. The issue of the vehicle being stolen does not affect the legal responsibility of the buyer to honor the loan contract.
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.
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.
Does gap insurance still apply if your car is paid off?
It will depend on the type of gap insurance you have. Finance gap insurance would expire as there is no finance to cover but return to invoice and vehicle replacement would still carry on until the end of the policy or a claim is made.
What happens if you have a clean title and loan is secured can finance company still repossess?
Maybe
What happens if you part out a financed car?
You still owe the finance company the balance owed.
What happens when you have insurance at the time of an accident and then it gets cancelled does the insurance still cover the accident?
Yes it does. The cancellation of an insurance policy is not retroactive.
Car stolen and recovered 6months later but inoperable and the car is repo and finance company settles with insurance company and then charge me the remaining fee is that legal?
It can depend on that state's laws but most times, yes, because you signed a finance agreement for a certain amount. Just like if you total your vehicle and you owe more than it totals out for, you will most likely still owe the remaining amount.
Still owe finance on car that has been written off do you still have to pay?
Yes, that is what should be done with the insurance money, pay off the car loan.
