Auto Loan Paid Off by other persons insurance?

Ok. I recently got rearended. The other persons insurance has now taken responsibility to make repair or to total the car. Now as it is, I currently still owe about 5,500 for that car that shows up to be around 7,000-9,000 dollars in the market value aspect. I did my research and it does seem to be around that range as value goes. Now if the car is totalled and if the insurance negotiates to pay for the car and they value the car a little over 5,500 which i owe on it. Do i get the difference in the from of a second check? 

9 Answers

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  • Anonymous
    8 months ago

    If you agree to $7000, you would get $1500. If you agreed to $5000, you would get zero and still owe $500.

    What you owe is not really relevant to what they offer.

    If they total the car, they will offer what they deem as fair market value which, I suspect will be less than what you think.

    They would send a check to you and your insurance company and your insurance company would refund any excess.

  • Edna
    Lv 7
    8 months ago

    There is no "difference" and there will be no "second check". If insurance totals your car, all you're going to get is the $5500, which is the fair market value of your car. 

  • Anonymous
    8 months ago

    The market value is that of the car still on the Lot. Not used.  You are using it so already you lost $1000 driving it off the lot. You also got into a crash. Knock another $1000 off.  So the $7000 car is now $5000.  See how it works?

    you threw in the word "IF" TWICE.  Try the word "hopefully" they will cover the full cost of $5500.   But also expect they won't.  So you will still OWE on the car.  They are not trying to make YOUR life easier.

    You want to fight the insurance company?  You will lose.

    Rearends are normally repaired.  It is cheaper and Insurance will always go the cheaper route.

  • Anonymous
    8 months ago

    The insurance company will pay out the lesser amount. If the damage is $5000, and the payoff is $7000, they'll only pay the 5. There is no"difference" to pay. Talk to your insurance.

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  • 8 months ago

    The liability carrier cannot pay your claim to your loan company.  They have to pay you and it is up to you to pay off the loan to get the title released, then sent to the insurance company.  If the settlement is more than you owe, you get to keep the difference.

    Source(s): Retired claims adjuster.
  • Scott
    Lv 7
    8 months ago

    Yes, you are entitled to any amount above what is owed on your loan.

  • 8 months ago

    Yup, you get whatever is left.  That's exactly how it works.

    If your vehicle is worth more than your remaining balance on the loan, you keep whatever is left over after the lienholder is paid off.  It's not like you get extra money or anything, that money is rightfully yours.  

  • May
    Lv 6
    8 months ago

    If they total the car and the value they determine is more than the balance of your loan. yes, you will get the difference.  The check will go to your lender (Lien holder), the lender will take what is owed and then they will send you the difference.

    Why would you begin a question with "OK" ?

    Grammar matters

  • 8 months ago

    Roughly. It's a little more complicated. The calculation of the exact amount considers sales tax and various other things.

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