Auto Insurance Claims/salvage title

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Expert: Charlie Barone - 4/12/2009


Question
my car was damaged by hail 3 months ago and i was given the worth of the car in check form. i have the car down as collateral for a loan and did not tell the lender that it was totalled out. i now have liability only on it and they are asking about the car. what do i do.

Answer
You need to tell the bank of the loss to your car. Leave it up to them to determine whether its value in its present conditon is sufficient to secure their loan. If it is drivable, it may be worth enough. If it is not, you will be asked to repay the loan in full within a very short time period. This is why most lending institutions insist on maintaining full coverage on any cars they use as collateral for a loan.

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Charlie Barone

Expertise

For questions involving auto damage claims, collision repair, forensics, industry practices, we can help. We specialize in claims for loss of resale value (Diminished Value).

Experience

I have 30 years experience in the collision repair and body reconstruction field, both hands-on and from behind the desk. I hold a Master Certification from ASE in the Body and Paint category, as well as their certification in Estimating. I have authored over 120 feature and training articles for the largest trade journal devoted to the collision repair industry, and have given expert testimony in court dozens of times. Licensed physical damage appraiser in Pennsylvania and reciprocal states.

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