If my car is destroyed?

Question

My car was destroyrd in a accident on the interstate in georgia and i was wondering if i had a title loan out for it do i still have to pay it

Answer 1

You will receive the Actual Cash Value for your vehicle.  The check will be sent directly to your lien holder.  If you owe more than the ACV, you are still responsible for the balance unless you have GAP coverage.  

You can probably roll the balance over to another loan.

Answer 2

You will need yo look at the "fine print" on the loan. You may have a section that pays off the loan if the collateral is destroyed. Probably not though.

If the loan was secured by the vehicle, then you either need to pay the loan off, or surrender the collateral, the car. Once again you need to look at your loan docs. You may be able to give the loan company the wrecked vehicle to fully satisfy your obligation. There may be a clause in the loan docs that says "if the value of the collateral is less than what is owed, you are responsible for the difference".

If you had full coverage insurance on the vehicle and you named the loan company as a lien holder or if they placed a lien against title with your local DMV, then your insurance company may pay them off.

If you were not at fault in the accident, and someone else's insurance is covering the repair/replacement/damages etc. of your vehicle, then make sure that insurance company is aware of the payoff amount of the loan against the vehicle so they can include that amount in any settlement you may receive.

If none of the above, then you will still have to pay for it. Otherwise I am sure the loan company will nail you to the wall with collection fees, interest, etc. and report all to the credit reporting agencies.

Good luck!

Answer 3

One of my friends has asked me a similiar questions before,we found helpful here.http://car-loan.online-frees.info/approv...

Answer 4

of course its your responsibility if you had a loan you should have collision on the car the insurance company will pay the loan holder book value if it less than what you owe you pay the difference or pocket anything left over