Anonymous asked in Cars & TransportationInsurance & Registration · 11 months ago

Why don't people who are behind on their car payments use this simple trick to create a better outcome?

Assuming the person who can no longer afford the car payments still has full coverage insurance with a gap addendum that hasn't lapsed, they have two choices:

1. Do nothing and wait for the repo man to come pick up the car any day now.

2. Take advantage of your insurance and total the car while you still have the chance.

If the car is repossessed, you'll have the repo on your credit report for 7 years, which will instantly disqualify you for an auto loan from virtually all other lenders, and if your car sells for less than the amount outstanding on the loan, you still owe the difference.

But if you have full coverage with gap insurance, and you total it before it is repossessed, then the insurance pays out on the car, pays off the remaining amount owed to the lender due to the gap policy, and no repo will be on your credit report.

Just go out to a remote area where you can be certain there are no cameras. A good place is a rural road with a curve in the road and a big old tree right where the curve happens.

Fasten your seat belt, position your seat and wheel so you are in a prime position for airbag deployment. Type a partial text to someone and hold the phone in your dominant hand and give the wheel the grip of death with your influential hand.

Brace yourself, and drive straight forward into the tree at around the roads speed limit.


If it's a modern car with modern front and side airbags, you probably escape with minor injuries at worst yet the car will be a total loss.

All evidence at the scene will indicate you were texting and driving. That's about the most common cause of accidents these days and would be hard to prove the claim wasn't genuine even if your insurance company found out that you were behind on your car payments.

Update 2:

Afterall, there are no tire marks on the road showing you deliberately swerved into the tree, you drove right into it consistent with someone looking down at the phone, which by the way is on the floor, with a partially written text, having landed in a position consistent with the scene you are trying to set up. Just be prepared with a believable answer if the police ask you where you were heading.

Update 3:

Insurance companies, if you have full coverage, will pay out even if the wreck was your fault, though your premiums will go up for it. And you'll still be out a car, but hey, no repo on your credit report, and the lender is paid off.

You can use any part of the insurance money not going to the lender to use as a down payment on a cheaper car that you can afford the payments on, because again, your credit is still good, the repo never happened so its not on there for other lenders to know about

19 Answers

  • 11 months ago

    Yup, you've got it all figured out. I'm sure no insurance company has ever heard of that little technicality before.

    Remember, don't drop the soap.

  • zipper
    Lv 6
    11 months ago

    That is called insurance fraud, and should land you butt in prison for 10 years or so.

  • 11 months ago

    Because that creates a much worse outcome. An accident that occurs while texting will result in (1) a large fine for texting while driving, (2) possibly losing your license, and (3) much higher insurance premiums for the next several years, which could easily cost more than it would have cost to pay off the car.

  • May
    Lv 6
    11 months ago

    Maybe because they are not a stupid as you

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  • Eva
    Lv 5
    11 months ago

    And the insurance company will deny the claim because he was on his cell phone, therefore being negligent.

  • JetDoc
    Lv 7
    11 months ago

    If you are found to INTENTIONALLY wreck your car just to get out of making car payments, you COULD go to jail for insurance fraud!

  • 11 months ago

    maybe cause they dont know about it

  • Anonymous
    11 months ago

    The problem is broken bones still hurt!

    Often the out is to report it stolen and set it on fire some place where there are no witnesses. Parking one in a lake is also another scam.

    A few years back a guy tried to scam an insurance company over a Bugatti.

    Sorry but jail time just isn't worth the risk and neither is a broken neck. With air bags one can find a piece of metal from a defective one imbedded in ones heart and that hurts dead.

  • D J
    Lv 7
    11 months ago

    What you have suggested is Fraud, which is a crime.

  • Anonymous
    11 months ago

    The #1 reason is probably because insurance fraud is a felony.

    After that because 2 people in my State have recently driven into trees and died.

    Do you REALLY think you’re the only person who has ever spent time on this scheme?

    In MY State texting while driving is against the law. It is entirely possible that the insurance company will refuse the claim on the grounds of illegal activity.

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