Question:

Insurance pay out?

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i have a car on finance which has just been written off due to an accident i had, will the insurance pay out go to me or the finance company?

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  1. If your insurance company has the name of your lien holder on file, the insurance company will make out a check with your name and the finance company's name on it, This check will be for what is called ACV (actual cash value) or what your car is really worth.  The ACV is determined by the mileage, the depreciation on the vehicle, the wear and tear on your car and other factors like that, (just expect it to be a lot less than what you owe on the car).  Once that's been determined by the insurance company, they'll pay that to the lien holder and if there is a difference (which there usually is) then you'll need to make up the difference, I think with paying the difference your options are either to pay it out of pocket, roll the balance due into a new car loan or hope and pray that you checked the box that said Gap Insurance last time you financed your car.


  2. Your insurance company will offer you the Actual Cash Value(replacement minus depreciation).   They are not obligated to pay off your loan.  If you do not agree on the amount, request a breakdown on how they arrived at the ACV.  Make sure that they listed all of the options and the mileage is correct.  

    Once you agree on the settlement, the insurance company will contact your lienholder for the payoff amount.  They will issue a check directly to the lienholder.   If the payoff is more than the settlement, you will get the difference.  Otherwise, you are still responsible for the loan.  

    If you are "upside down"(owe more than the ACV), check to see if you have GAP coverage.

  3. the check will go to the finance co that was listed on insurance certificate

  4. if you owe the finance company and the insurance co is aware that the finance company is a leinholder, then the ck will go to them

  5. the insurance company should know the vehicle is on finance, they will pay out the finance company, as they are the legal owners. If there is a balance left, then this will be paid to you most likely direct from the insurance, but could be from the finance. If you owe more than the payout, you will have to find the difference.

    Best advice is call the finance company, tell, them about the accident and get a settlement figure, this will help you negotiate the settlement with the insurer. Good luck

  6. Never mind that, where are you going to find the difference between what the insurance will pay-out and the amount outstanding on your finance agreement?
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