Expert: Doctor Settlement - 5/26/2010

Question
i was in a car accident, other person was at fault. im getting the run around with their insurance co. so i went through my insur but my insur wont pay to repair. they said its totaled do to prior unfixed damages bringing down the value. my questions are

1: if i keep the car will my lein holder still make me pay for the car if its demeed salvaged? existing balalance is $9k, car only valued at roughly $4k. i do have GAP insur.

Answer
Hi Rob,

Congratulations on having the foresight to purchase GAP insurance; you are most likely going to need it.  The lienholder DOES for sure get notice if the vehicle is going to be totaled, since title will pass.  Hence, they want their money.

First off, I DO have some ideas on how a victim can prevent his car from being totaled, BUT, they do require the cooperation of the lienholder.  If you owed $3K and had a good payment record, you could negotiate to use one of my methods to keep the vehicle.  

But with the debt at $9K and the value only at $4K, the lienholder is not at all interested in "let's make a deal".  Why should they, since they have the hammer and the risk of accepting low value collateral is unacceptable.

Hence, you will use your GAP.

If there were any other circumstances, I would think that you would be able to work a deal and do one of two things.  First, have the repair work done with NON-OEM PARTS or uses parts or ignore some cosmetic damage.  THAT tactic will knock a HUGE percentage of the repair estimate.  OR, second, if there were no $9K lienholder, you could buy back the salvage and have it repaired as above, have it inspected and relicensed.  

Just be darn happy you were smart enuf to buy GAP insurance!

I trust that my time here has produced some information that has been of value to you, and thus I would respectfully request that you take the time to locate the FEEDBACK FORM on this site and leave some feedback for me.

Best Wishes,

Dr. Settlement, J.D. (Juris Doctor)
http://www.SettlementCentral.Com