Who gets the total loss check?
If your vehicle is financed the liability insurance carrier may determine the pay-off to the finance company and write a check to the finance company for the pay-off and write you a check for the difference. Sometimes the check from the insurance company may have your name and the name of the finance company on the check. You would then endorse the check and turn it over to the finance company. The finance company will pay off the loan and refund the difference to you as your equity in the vehicle. If the pay-off on the loan is greater than the check from the insurance company then the finance company gets the entire check and you will still owe the finance company the difference unless you had purchased ‘gap’ insurance. (Gap insurance is insurance you purchase. It is sometimes required by lessors for leased vehicles and sometimes provided in financed purchases. Another kind of optional insurance you might have purchased is ‘repair or replacement’ coverage. ‘Repair or replacement’ cove
Related Questions
- If my car is a total loss and I order a new vehicle from MINI would I have to pay delivery charges, new vehicle registration fees, road tax, number plates and factory-fitted options?
- What if the asset(s) is/are lost, stolen, damaged or destroyed or become subject to a total loss claim during the period of the lease?
- In the unlikely event of a total loss, how would my Static caravan claim be settled?
