My daughter was recently in a automobile accident and my car was totaled. My insurance was trying to get me to sign a check over to my insurance for the value of the car, my finance company was trying to raped me with the interest when I only had the vehicle three weeks. My finance co wants the interest and the principal. And now the gal who hit my daughters insurance wants to give me only the value of the car. I did'nt use an atterney due to the fact Ive had it with everyone. How do I post this on ask me?

>Moved from Forum Help<

Hello Precious:

You're doing fine.

If you didn't buy replacement coverage (nobody does), then your insurance is only going to pay the Blue Book value, which is, I'm sure, much less than you owe.

Of course, you're only going to owe interest on the money for as long as you had it, however the devil is in the details of your contract.

I don't think you need an attorney. You're just going to have to negotiate a deal with your finance company.

excon

[QUOTE=Precious_45]My daughter was recently in a automobile accident and my car was totaled. My insurance was trying to get me to sign a check over to my insurance for the value of the car, my finance company was trying to raped me with the interest when I only had the vehicle three weeks. My finance co wants the interest and the principal. And now the gal who hit my daughters insurance wants to give me only the value of the car. I did'nt use an atterney due to the fact Ive had it with everyone. How do I post this on ask me?

>Moved from Forum Help


Okay, it's been moved.

I don't understand why the insurance company wants the check endorsed back to them (the insurance company). If the car was financed there should be a lien on the title by the finance company and the check should have been payable directly to the finance company.

You will owe interest on the car note until it is paid in full, even if the car is totaled or somehow out of service. For example, if your loan is $1,000 and the insurance company pays $800 you will owe interest on the balance - $200 - until you pay the loan off. This happens all the time if you pay too much for a car, finance with a very low downpayment, carry forward another car loan. Cars also depreciate the minute they're driven off the lot so it's possible you won't get what you paid - you'll only get book value.

The insurance company pays the book value on the car - they do not pay the interest you owe.

Does that answer your question?

Ok... I'm going to try my best to extract your question from this as the information/language is a bit unclear. So here goes...

The finance company is within their rights expecting principal and whatever interest is due regardless of the length of time that you had the car. They are still entitled to be paid for the car that you/your daughter drove.

The insurance company expects you to sign over the [loss] check to the finance company. The insurance company is paying for your totaled vehicle and you essentially have to give them permission to do so (although you really don't have another option).

The at-fault party's insurance is only required to pay for the actual cash value of the car which is often determined by Kelly Blue Book values. This is why it is important to purchase something called "gap" insurance. This protects you if you are "upside-down" on your loan (meaning you owe more on the car than it is actually worth). So if you owe $12,000 on your car but it's only worth $9000 at this point, the gap insurance covers that $3000 difference so that in a case like this so that you can at least break even and not still owe money on a car that has been junked.

At this point, it's basically waiting for the dust to settle and then start looking for a new car. Unfortunately you will owe whatever the difference is between the loan amount and the actual cash value is of the car.