If a car is totalled who gets the insurance check?

Question

My car was totalled, I am still paying the bank for it. Does the insurance company cut the check to me or my finance company???

Answer 1

the lein holder gets the insurance check, and you are still liable for the difference between the check and the payoff.  Some insurance companies offer policies that will pay off the vehicle no matter how much you owe.  Check your policy first.

Answer 2

haha.. ok almost all their answers contradict each other.  Let me give you the straight answer out of an insurance adjusters mouth.

The insurance companies job is to first pay off your loan.  If the car is worth LESS than you owe.. your stuck with the difference.

If your car is worth more then the loan... they will first pay the loan off and then you will get the additional money.

Hope that clears things up.

Answer 3

If you are using your insurance company they pay the bank -- if any money is left they give it to you. If the other party insurer is paying then you get the check.

Answer 4

I'm no expert on this, but I would suggest you have a look here,there is expert's ideas you mayfind.http://carinsurance.expertsupport.info/a...

Answer 5

The person who is named on the insurance policy gets the check.

While the insurance company is not responsible for how you use that money, you still owe the bank for any money you borrowed on the car, so you would cash the insurance check, and use it to pay off as much of the debt as possible. If you owe the bank more than the insurance check amount, you must pay the difference.

Answer 6

First money goes to the bank.  If there is any equity in the vehicle - that goes to the titled owner.

If you owe more than the vehicle is worth - you are "upside down". In this case, all the money goes to the lien holder and you have to pay the balance to the bank.  If you have been a good customer, the bank will usually do a substitution of collateral. They may roll the balance into the new loan for the replacement vehicle. Of course, if you wreck that car - you end up upside down again.

The insurance company pays the bank, because they have to in order to get the title or lien release.  When an insurance company totals your car, they buy the wrecked vehicle from you and sell the salvage to recover some of their payment. In order for them to become the legal owners of the wrecked car, they have to get the title and either have you sign it or have you sign a power of attorney so they can sign the title for you.

Your adjuster should be able to tell you exactly how they will handle it.  

Answer 7

The owner gets the check, and that would be the lien holder.