Is it a breach of contract for my insurance company not paying my loss payee for my vehicle which was totalled in a car accident. The insurance company paid the tow company (which was a scam) before paying my loss payee which was listed on my insurance policy. I have never been given a copy of any documents pay my insurance company stating how they would pay out a claim in the event of an accident. Do they owe me duty to disclose this info at the beginning of my policy so that I am aware of the actions they will take when I have an accident.

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Originally Posted by MR YUMA

Is it a breach of contract for my insurance company not paying my loss payee for my vehicle which was totalled in a car accident. The insurance company paid the tow company (which was a scam) before paying my loss payee which was listed on my insurance policy. I have never been given a copy of any documents pay my insurance company stating how they would pay out a claim in the event of an accident. Do they owe me duty to disclose this info at the beginning of my policy so that I am aware of the actions they will take when I have an accident.

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They pay any liens off first, then if anything is left it goes to you. If the payout is lower than the value, then you owe the difference.

Is that your question?

I believe it's insurance law. Your loan company/bank requires that you carry insurance until the car is paid for and that they be listed as a lienor.

Did you want them to give you the money and then you were going to pay off the car loan? That would work out the same - loan company/bank gets paid first.

I guess I don't understand your complaint - or why the tow company was a scam.

I HAVE seen insurance companies cut checks in both names - yours and the bank's - and you endorse it over to the bank to pay off the loan but this is not common, takes extra time, meanwhile the interest on the loan keeps running. That does not change the pay out amount.

Contact the company and tell them you want a statement concerning the pay out.

You will have been given a copy of your policy when you got your insurance, inside it, they will list your responsibility if there is a accident and it will list what they will do.

Also if you do not understand it, or if you don't read it, you should be asking your agent.

Also some companies will take "months" to pay. And some policies have separate towing provisions to pay the towing.

You would have given a report of the accident to your insurance company by the method they require, normally calling some phone number and latter a adjustor contacting you either by phone or in person.

Sometimes the value they claim will be too low and at times will not even cover the debt if you paid too much for a vechile or if you have not had it long.