If someone dies natural causes and they had a car that needed to bepayed off, who pays the remaining balence?

Question

Does the Insurence Company pay it off? I asked this because now I owe $125.00 a month of 40 months but also my dad is helping w/ his $225.00 to $250.00 on top of that.The remaining balence on the car is 10 thousand but I come up with more owed toward the car than is supossedly there.

Answer 1

No, no one pays it off - it gets repo'd.

If the deceased had life insurance, the beneficiary gets the money, and can do whatever they want with it.  

This sounds like YOUR loan, not your dad's.   And you're probably forgetting to add in the interest.  40 months is 3 1/2 years.  So it's highly likey that the $10,000 loan will generate $5,000 in interest, over 3 1/2 years.

Getting a second job flipping burgers to pay this off sooner can literally save you THOUSANDS in interest.  

People tend to buy things these days based on the "monthly payment", not the actual cost.  AND, they tend to pay double, over the life of the loan, than the actual cost once you add in the interest.

Effectively, with interest, you're enslaving yourself to pay the monthly payments.  Think about that next time you buy a car.  That $1,000 clunker that gets around town isn't such a bad deal, if it keeps you out of debt slavery.

Answer 2

If he had death indemity on the car loan - it'll be paid off by the bank it's financed with.

If not, it's the responsibility of whomever "gets the car".

Alot of folks get enough life insurance on themselves to take car of all bills (house mortgage, car payments)!!

If no-one wants the vehicle, it can be given back to the bank - and if the deceased person is the only person on the loan - then it's not ruining anyone's credit (anyone who is still alive)

Answer 3

Assuming the car was in his name only, the car, and the responsibility goes to his estate.  The executor of the estate, usually in consultation with the heirs, will decide how property is to be disposed of.  

Auto insurance won't pay it off.  Life insurance just pays a lump sum to the beneficiary.  It's possible the loan may be insured, in which case, the car will be paid off.

Answer 4

The estate of the deceased person pays off debts to the extent possible.