Auto Insurance Claims/Auto Insurance

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Expert: Bennie719 - 12/18/2007


Question
Can the lienholder repossess the vehicle and settle your claim with the insurance company and then charge you the remainder of the balance? Once repossessed do I even owe a remainder, since it is going on my credit report any way?

Answer
Hi Sharilyn,
When a vehicle is repossessed, you still own a remaining balance if the car is repaired, sold at auction and brings more than the balance of your loan and the leinholders cost of reposessing.
If it sells for less than you owe, or is totaled for an amount lower than you owe, you are still liable for the remainder of the loan unless you had 'gap' insurance.
Hope this has been of help.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie CA 12-18-07 2:42: PM PST

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Bennie719

Expertise

I have extensive knowledge in Personal Auto, Homeowners Insurance and Personal Umbrella coverage. I am also thoroughly familiar with claims handeling procedures. Will answer questions related to the above.

Experience

Experience in the area: Served as an expert at askme.com from 7/2000 thru 10/2002 in the catagories of general insurance, auto and home insurance. Answered 422 questions before that site closed. Licensed in California since 1961, first in Life and Health for 2 + years and as a Property/Casualty Agent/Broker since 1964. I sold my business and took early retirement in 1998. Still maintain a valid California Property/Casualty Agent/Broker license. I have been a volunteer at allexperts.com since 2002. I can provide assistance in the following fields: Property and Casualty Insurance, Insurance Law, Auto Insurance Claims.

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