Earlier this year my roommate's car was totaled. She had full insurance on it, but she's still having to pay a monthly payment because when she bought the car, her ex-husband co-signed for it. She's been divorced for a few years now and has made every single payment for the car since she owned it, but the insurance company won't let her out of the payments unless she gets him to sign it over to her. She has since tried to contact him, but can't get in touch. I suggested she just stop making payments on it since, but it will screw her credit rating. Anybody have any advice?

I think you are confused. The car loan and the car insurance are not related. I the car was totaled and she did not replace it, then she cancels the insurance. This would have no affect on a credit rating.

However, if she had a loan and the car and the insurance payment did not cover the balance due on the loan, she needs to continue making payments. The insurance company has nothing to do with the car loan payments. Did she turn the insurance settlement over to the lender?

You're right, I mistyped. The problem is that she submitted all of the information to the insurance company and they refuse to settle with her since her ex-husband's name is on the title. If there's any more information you guys might need, I'll be sure to ask her. Thanks for the reply, Scott.

Ahh, now that makes more sense. So is there a problem with the ex signing off on the settlement? If they authorize that the money be paid directly to the lender, that should work.

If the ex won't help, then she needs to provide her divorce papers showing she got the car in the divorce.

I think the first thing is to have the DMV issue her a new title in her name only (which is something she should have done years ago). Then the insurance company will be willing to work with her as the sole legal owner. To do this she will either need her ex to sign the existing title over to her or she is going to have to use her divorce decree to prove that the car is rightfully hers. The web site for your state's DMV should provide info on the necessary forms and procedures.