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Your finance company holds the title to your vehicle until your loan is satisfied. If your vehicle is totaled, the check will most likely be issued in both of your names. Any amount left after your loan is paid would go to you. The insurance company will determine the value of your vehicle at the time of a loss and pay that amount to you and the finance company. Most times as soon as you leave the dealership the value of your vehicle depreciates. So you may be upside down as soon as you leave the lot if you were to get into an accident. In order to protect yourself from that type of loss, you can purchase GAP insurance. This will cover the difference of what you paid for the vehicle and what the actually value is.
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 | What happens when my car is totaled in an accident? | | I've just been in an accident. How will the insurer issue the check to repair my car? | | Exactly how is the "cash value" of an auto determined after a total loss? | | Please tell me what will happen when you are at fault in the accident. Will you get paid for the value of your car? | | My car is a year old. Am I still required to carry full coverage on my car? If I am, then how would they find out if I have insurance? | | I am going to buy a vehicle and finance it and will need full coverage. When applying for the quote, do I choose "Minimum Bank Required"? | | I have a loan on my vehicle. I did not tell the insurance company that I have a lien holder so they are not listed on my policy. Have I violated a law? | | If I was in a car accident and not at fault and my damage was $1000.00 dollars less than than my remaining auto loan with the vehicle being totaled do you think they will pay the auto loan off? | | I am considering not having the damage to my car repaired and just cashing the check. The check is made out to myself and the body shop. Is there a legal way for me to just cash the check as a settlem... | | I bought a car last weekend. I used my home equity to pay for the vehicle, so I gave the dealer a cashiers check to buy the car. I also bought gap insurance. Although I did not finance the car using a... | | When in a car accident that has been declared not your fault. Is the cited drivers car insurance liable for anything other than paying off what payments you have left on the totaled car, or are they o... | | My son borrowed a car from his friend with permission. He told my son to be careful because the car had some brake trouble. My son drove on some gravel and the brakes locked up and the car was totaled... | | Can I be reimbursed for any portion of the amount I paid for gap insurance when I trade in my vehicle? | | I am in the process of buying a car from an used car dealership. While talking to the owner, he told me that if I buy the car, I would need to list his name on my policy. I do not understand why I wou... | | My son was paying for half of my brother-in-laws car, the car payment is due at the end of each month, he was in an accident and totaled the car on the 6th of the month. The insurance is paying off th... | | My wife hit a deer and totaled our car, but the insurance money is not enough to pay off the car from the lender. What can we do? | | I am currently buying a car and the finance place is charging me extra for insurance because I had no insurance. I was in a accident and the car got totaled. I was not at fault, what is covered and no... | | I had my car four months when it was stolen and totaled. I have gap insurance, my question is if the GAP will pay me back the $5000 dollars that I put down on the car? Thank you for your time! | | We purchased a vehicle brand new on August 31st and on Sept 17th it has hit and is probably going to be considered totaled. Thankfully, we did got Gap insurance when we purchased the vehicle but at th... |
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 | Pretty good. It satisfy my curiousity. | | The obvious answer is that most consumers are none the ware of the market value of a vehicle nor do they actually care and are willing to overpay for their individual wants their own personal identity, that special auto that makes them who they are and the price doesnt matter. Todays consumers only care if they can squeeze the monthly installment amount out of their paychecks. Its funny how most people associate themselves as well as others in regards to what make or model vehicle each drive. Cost in general is not a factor. We havent even touched on the financial loss facts regarding a total loss which 99% never consider. The auto marketers and dealers know this and that is why those unlucky individuals stand with open mouths following a loss of a vehicle which they over paid the dealer. |
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| This car insurance question was asked on 5/8/2005 | | | This auto insurance answer was last updated on 5/9/2005 | | | Larry requested this car insurance solution. | | | Rated 6 out of 10 based on 4 votes. | | | Claims | | | Helpful Tips | |  Print this car insurance question and answer | |  Email this auto insurance answer | |
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