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Auto Insurance Claims/lien holder settlement

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Expert: - 9/15/2009


Question
I was in an accident a few months ago & the my vehicle was rendered a total loss by bout $10. After the settlement with the insurance company & lien holder there was a $2000 pay off still left. The lien holder decided to keep the vehicle to get the most out of it that they could but I am still left with the pay off of $2000. How is this possible? I would be ok with getting the vehicle back & continuing to pay the money or them keeping the vehicle & my loan being done with nothing else to pay on it. However I do not understand how they can keep my vehicle & still make me pay $2000. What steps do/can I take to go one way or the other?

Answer
Hello,

This is a little strange where the lien holder can keep the car and you still owe the money. Kind of sounds against the law, but I am not a lawyer.

If you are willing to take the car back and continue paying on the note, what would be the problem. The car only serves as collateral for the loan itself.

Contact the lien holder and see if you can work this out. If not, its time to get an attorney involved.

The way I look at it, is if they want to keep the car no problem, however you should not owe anything.

If you tell me the state you are in, I might be able to refer an attorney.
Write me private email at robo14@aol.com

Rob

Auto Insurance Claims

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Rob Painter, Ase, CFEI, CAFATE

Expertise

Please remember. I am not an attorney and cannot legal advice. My answers are based on my experience due to litigation I have been involved in as an expert, for both insurance companies and while oposing them opposing them. I deal with only comprehensive claims on autos related to fire and theft. I have even had the opportunity to rewrite policy coverage language as it relates to vehicle theft and forced entry for insurance defense attorneys.

Experience

Experience in the area: Working with insurance companies and attorneys on these issues for over 20 years. It is very common to have a reported stolen car with a so-called factory anti-theft system to have the theft claim denied. I have served successfully as an expert witness in the courts across the US representing the insured and their attorney revealing that the insurance expert did not take all known theories into consideration before rendering their "Forensic" conclusion. Many insurance carriers us independent "Forensic" experts to examine reported stolen vehicles commonly using flawed methodology implicating the innocent insured with the theft. My job is to determine if the insurance expert reached his conclusions based on accepted scientific principals or just net opinion with no basis other than opinion. My case record against such experts is very compelling.My resume can be seen at the catagory "Auto Theft and Prevention." In "Forensics" the scientific method must be employed. In the forensic locksmith field determining how a reported stolen vehicle was last operated, many processes cannot be duplicated and are conveniently not addressed. If they were, juries would have the opportunity to make a fair and impartial opinion at least about what the expert could or could not prove. There is a purported process determining the last key used. The chances of determining such is very rare uless the key is found in the ignition lock. Experts commonly destroy evidence as well and are rarely questioned on this event. I reveal the weakness in their testimony on such instances.

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