Written off vehicle on finance question

[sharky]

My girlfriend has had her car written off by a woman turning right into her path. She has been charged so no question of liability.
Question is, Her car was on finance, 2 1/2 years of payments made.
What happens as far as the ins. company ?
Do they just pay out the value of the vehicle or do they take into account the interest on the loan ?

[Large]

In a fair world, they should pay out the value of the vehicle- paying back any money owed to the finance co, then any left over to your gf.

Have you got a copy of the insurance?

Agreed value or book value?

Any addons to the car not on the policy?...take them if if the insurance co wont pay for them

[RevHead]

my wife totalled our car back in 2000 same story as your gf ,they payed out esanda and we got the left over cash was about $3 grand back then ,had to use cash that for deposit to buy another

[Iceman]

when did you get a girlfriend Russ?

[Chase]

Insurance will only pay whatever the agreed/market value is (depending on your insurance), the principal on the vehicle (finance) is paid first for what ever the payout value of the vehicle is - normally less interest if it's interest reducing loan but can charge exit fees - or the full interest and outstanding value if the loan is not interest reducing. You get what ever is left over.. fkd hey.

[ozzy1100]

fuck rus when did this happen are u in toomoomba still

[StuNVA]

If the financier is listed on the insurance policy the insurance company pays the lone off and you get the balance, if they are not listed then you get 100% less any excess.

Some financiers have a discount for early payout some do not, some pay market value, some pay agreed value, it will be on your policy.

[Chris41]

Some times it pays to be real nice to the insurance company people you are dealing with
when my bike got burnt they weren't even going to pay out the full amount but after a little discussion I ended up 2K in front.
Make sure you read and understand your policy.
Chris

[lurch]

The finance co. should take into account that the loan is effectively being paid out early and pass on the payout figure to the insurer. An early payout normally saves interest. If there's an excess it should be paid to your lady.

One problem she might face is that, if she doesn't have gap insurance on the finance, it's possible that the payout (market value) could be less than the amount owing on the loan. Gap insurance covers the difference.

[Bob]

The insurance paid the loan out in full, the what happened when I wrote off the SV.

[sharky]

Looks like she is royally fuk'd then...Finance early settlement figure is $9700....car is worth $9500-10,000.

2 1/2 years of finance payments down the drain...effectively renting the car for that time....
Is there nothing she can do ?

[lurch]

It sucks but I don't think there's anything she can do. Provided the insurance co. agrees with that market value it looks as though she should break even. Here's hoping it all works out and they pay it out in full.

[sharky]

The other problem is she was in full time employment when she got finance...recently she has started her own business so they won't be to keen to lend her loadsa money for a while...

[God]

I'm just in the process of replacing my car after a drunk driver destroyed it.

It's been 15 years since I've had to search for a cheapy car but I have been amazed at how much/nice a car you can get for sub $5K, for sure they ain't the coolest most desirable vehicles but cheap reliable transport without killing the piggy bank. Bomb insurance at under $4 a week too, bargain.