So I was involved in an accident in a no-fault state (cop said the other driver was at fault though and he received a ticket), and car was deemed a total loss. The value was several thousand less than the loan and I did not have GAP (lesson learned). I also did not have loan coverage through the insurance company either, so this is confusing to me. I am fine paying the remainder, however my insurance company paid the total balance of the loan.
Did they do this so the lien on the title/car would be released and they can sell to a salvage? Do I owe the remainder of money to the insurance company now? I reached out but they didn't seem to know what is going on.
Car totaled, no GAP, insurance paid off anyway?
byu/Objective_Life_1298 inInsurance
Posted by Objective_Life_1298
2 Comments
>Did they do this so the lien on the title/car would be released and they can sell to a salvage?
That’s a possibility.
>Do I owe the remainder of money to the insurance company now?
Doubtful.
>I reached out but they didn’t seem to know what is going on.
Who is “they”?
Insurance claims people don’t make payments without somebody knowing what’s going on and authorizing them.
That being said, if nobody is coming after you for money, might be best to not poke the bear.
Did the insurance company really submit payment in the amount of the loan balance? Or did they submit what they told you they would pay, and then the remaining loan balance “magically” went away?
If you owe anything, it won’t be to the insurance company. Lienholder might pursue you though for the remainder, all at once afterthefact separately.