What happens if your car is total but you're still making payments for it?
01-03-2011, 03:56 PM
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2005 c230 KOMPRESSOR
What happens if your car is total but you're still making payments for it?
So i made a similar thread a few months ago, i got into an accident in november and my car has been in the body shop since mid december. Im still making payments for it and has been doing so. I just heard from my insurance company today that they ruled the car a total lost. Since i am still making payments for the car the insurance company will not reimburse me back with anything. My question is what happens now with my auto loan from my bank, will the loan continue until i pay the car off even though the car is no longer in my hands? Or will the loan get terminated and if so is there a fine for it? I am gonna go talk to my bank tomorrow about all this but i just wanted to ask and see if i can get a quick answer here so i'll know what to expect.
01-03-2011, 04:24 PM
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Insurance will offer you a price for the totaled car. That amount will be used to settle the loan and if there's any left-over you'll get that. Be careful with your offer for the vehicle and be sure that it's a fair-market replacement value and not some kind of wholesale auction value. They should give you the cash to actually replace the car at retail not some trade-in related price. You can negotiate this value and your claim is not 'closed' until you accept the offer.
01-03-2011, 04:24 PM
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You go on paying unless your insurance liquidates the debt.
I think there is something you are not understanding here.
Normally insurance would liquidate the debt & if there are monies over from that liquidation you would enjoy them. i.e the equity you might have built up in the vehicle.
You need them to present the math to you.
I think there is something you are not understanding here.
Normally insurance would liquidate the debt & if there are monies over from that liquidation you would enjoy them. i.e the equity you might have built up in the vehicle.
You need them to present the math to you.
01-03-2011, 05:12 PM
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2005 c230 KOMPRESSOR
Insurance will offer you a price for the totaled car. That amount will be used to settle the loan and if there's any left-over you'll get that. Be careful with your offer for the vehicle and be sure that it's a fair-market replacement value and not some kind of wholesale auction value. They should give you the cash to actually replace the car at retail not some trade-in related price. You can negotiate this value and your claim is not 'closed' until you accept the offer.
01-03-2011, 05:15 PM
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2005 c230 KOMPRESSOR
You go on paying unless your insurance liquidates the debt.
I think there is something you are not understanding here.
Normally insurance would liquidate the debt & if there are monies over from that liquidation you would enjoy them. i.e the equity you might have built up in the vehicle.
You need them to present the math to you.
I think there is something you are not understanding here.
Normally insurance would liquidate the debt & if there are monies over from that liquidation you would enjoy them. i.e the equity you might have built up in the vehicle.
You need them to present the math to you.
01-03-2011, 05:51 PM
#7
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If the current balance on your car loan is $14K and the value put on the totaled car is less than that $14K, then you will need to pay the difference to the bank. No choice. This is called negative equity.
On the other hand, if the value put on the totaled car is greater than $14K, the difference [between the value of the car and the loan amount] will be given to you by the insurance company. In this scenario, you have 'equity' in the car.
On the other hand, if the value put on the totaled car is greater than $14K, the difference [between the value of the car and the loan amount] will be given to you by the insurance company. In this scenario, you have 'equity' in the car.
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01-03-2011, 05:55 PM
#8
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+1 - far better put than my effort!
In SA you would have to be insured to cover full outstanding to the bank or you would not get a loan. I've forgotten the US custom/convention. Finally left there in 2001. I'm sure pcy can fill you in.
In SA you would have to be insured to cover full outstanding to the bank or you would not get a loan. I've forgotten the US custom/convention. Finally left there in 2001. I'm sure pcy can fill you in.
Last edited by Glyn M Ruck; 01-03-2011 at 06:00 PM.
01-03-2011, 06:30 PM
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2005 c230 KOMPRESSOR
If the current balance on your car loan is $14K and the value put on the totaled car is less than that $14K, then you will need to pay the difference to the bank. No choice. This is called negative equity.
On the other hand, if the value put on the totaled car is greater than $14K, the difference [between the value of the car and the loan amount] will be given to you by the insurance company. In this scenario, you have 'equity' in the car.
On the other hand, if the value put on the totaled car is greater than $14K, the difference [between the value of the car and the loan amount] will be given to you by the insurance company. In this scenario, you have 'equity' in the car.
01-03-2011, 06:43 PM
#10
Did you have GAP insurance? I added GAP insurance to my auto when I first got it, Just in case. If they only give you fair market value and you owe more than that they will pay the difference plus fair market. Its worth the $20 bucks extra on the plan...
01-03-2011, 06:46 PM
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2005 c230 KOMPRESSOR
so i just talked to my dad and he mention something about purchasing a gap insurance and i think i did. My dad said if i did purchase the gap then i wont have to pay the remainder back. I'll be going to my bank tomorrow so i'll find out about it anyways just wanted to get some answers ahead of time. Thanks to all that replied.
01-03-2011, 06:47 PM
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2005 c230 KOMPRESSOR
just talked to my dad and he just mention that to me. As a matter of fact i believe i did purchase the gap insurance.
01-03-2011, 07:46 PM
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SL 65 AMG, Porsche 911 (993), 2014 Cayenne GTS, 2013 Toyota Highlander Limited
Good luck....
Great you have GAP insurance, but try to get them to give you more for the car's replacement cost.......go on internet and show them examples/pictures of similar cars for sale with similar mileage.......search/pick the highest values and submit to them in your argument for more of a settlement.......I did this once and got $ 16k versus original $ 9 k offer (and bought a new MINI)........
If you have any great pictures of your car looking good near the date of loss, show that also........don't let them lowball you, be aggressive, you have nothing to lose now........as you will have to replace the car and may need the funds.....good luck in your negotiations...
If you have any great pictures of your car looking good near the date of loss, show that also........don't let them lowball you, be aggressive, you have nothing to lose now........as you will have to replace the car and may need the funds.....good luck in your negotiations...
01-03-2011, 08:03 PM
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01-03-2011, 08:36 PM
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2005 c230 KOMPRESSOR
how do i check the value of my car on kbb? im on there site now and enter the info of my car and it came to 20k. I know its not worth that much. My car is a 2005 c230 silver kompressor with 44k miles on it right now. decent condition, just bought the car a lil over a year ago (nov.09) with 34k miles when i bought it. Dvd navigation, black leather interior, front/rear side air bags.
01-03-2011, 09:26 PM
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no mb
Here is what I got for my area. I guessed on some of your options.
http://www.kbb.com/used-cars/mercede...&mileage=44000
GA
http://www.kbb.com/used-cars/mercede...&mileage=44000
GA
01-03-2011, 09:45 PM
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2005 c230 KOMPRESSOR
I dont think im understanding this correctly, im still making payments on my car, so what do u guys mean by the insurance will offer me a price for my car? The car hasnt been paid off yet. On KBB the value for my car in good condition is at 16k, so are u guys saying the insurance is going to pay me 16k or close to that if i prove my car is still in good condition? Even though i didnt pay off the car yet?
01-03-2011, 09:55 PM
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2004 C320 Sport
The whole purpose of insurance is to cover repair costs, replace a totaled car, etc.
You lost your car so insurance will essentially reimburse you for it because that's why you pay that monthly premium. The money they give you to reimburse your totaled car will go towards paying off your debt on said car. The market value will determine what it's worth, pre wreck, and that's what they will offer you. Hope that helps
Also, if you have access to the car, start ripping off good pieces to sell here, ebay, etc. Extra money.
You lost your car so insurance will essentially reimburse you for it because that's why you pay that monthly premium. The money they give you to reimburse your totaled car will go towards paying off your debt on said car. The market value will determine what it's worth, pre wreck, and that's what they will offer you. Hope that helps
Also, if you have access to the car, start ripping off good pieces to sell here, ebay, etc. Extra money.
Last edited by ND2020; 01-03-2011 at 09:58 PM.
01-03-2011, 10:04 PM
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I dont think im understanding this correctly, im still making payments on my car, so what do u guys mean by the insurance will offer me a price for my car? The car hasnt been paid off yet. On KBB the value for my car in good condition is at 16k, so are u guys saying the insurance is going to pay me 16k or close to that if i prove my car is still in good condition? Even though i didnt pay off the car yet?
GAP is great since almost any car ends up deprecating faster then any one can pay it off, I recommend it to every one, its a 400-800 dollar option that can save you 1000s.
Also usually gap pays off exactly what you owe, they dont give you more, check your gap coverage papers usually they dont allow payouts over the total of your loan.
If your making payments, ins pays what its worth not what you owe in payments, GAP pays what you owe in payments regardless of worth
If you owned the car the idea of insurance is giving you money to but the exact same car you had at time of loss. AKA if yours was a C240 with 40k they are supposed to give you what it would cost to get the exact same car, if you could find one with your same model/millage and condition, rarely does any one re-purchase the same model however.
Last edited by AdidasC230; 01-03-2011 at 10:07 PM.
01-03-2011, 10:05 PM
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01-03-2011, 10:10 PM
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A lot of people with totaled cars are able to part it out though, but like he said clear it first.
01-03-2011, 10:12 PM
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2005 c230 KOMPRESSOR
The idea is that if you owe 16K and the insurance will offer you fair market retail value for it, if its valued at under 16k then you will get what they decide its worth which let say is 12k. Then you have gap coverage which comes in and eliminates the rest of the -4k you owe making your car paid off, the ins company gets the title and the loan is paid off and you are free of any more debt and payments to it.
GAP is great since almost any car ends up deprecating faster then any one can pay it off, I recommend it to every one, its a 400-800 dollar option that can save you 1000s.
Also usually gap pays off exactly what you owe, they dont give you more, check your gap coverage papers usually they dont allow payouts over the total of your loan.
If your making payments, ins pays what its worth not what you owe in payments, GAP pays what you owe in payments regardless of worth
If you owned the car the idea of insurance is giving you money to but the exact same car you had at time of loss. AKA if yours was a C240 with 40k they are supposed to give you what it would cost to get the exact same car, if you could find one with your same model/millage and condition, rarely does any one re-purchase the same model however.
GAP is great since almost any car ends up deprecating faster then any one can pay it off, I recommend it to every one, its a 400-800 dollar option that can save you 1000s.
Also usually gap pays off exactly what you owe, they dont give you more, check your gap coverage papers usually they dont allow payouts over the total of your loan.
If your making payments, ins pays what its worth not what you owe in payments, GAP pays what you owe in payments regardless of worth
If you owned the car the idea of insurance is giving you money to but the exact same car you had at time of loss. AKA if yours was a C240 with 40k they are supposed to give you what it would cost to get the exact same car, if you could find one with your same model/millage and condition, rarely does any one re-purchase the same model however.
