Rejected Cash Out Due to Unpaid Auto Loan

Bhong

New Member
1
guys any thought with this:

my car had a hale damage and i wanted to cash-out the money that is stated on the quotation and have my car fixed to the place where I am about to move. but according to the insurance company, they can not grant my request because it is not paid off from the bank. but according to the other adviser coming from the same insurance company which i talk to they will give me a cash out but only 70% from the total cost assessed. and then to the girl whom is our adviser, i CANNOT cash out due to the reason that the car is under the banks name.

1. They said that they are not issuing me the cheque because if they issue, it will be under the banks name not to me.
2. what is the connection with the auto loan from the bank to my claim?
3. is it true that i cannot cash out my claim?
4. why 70% only?

guys if somebody has the same case as me could you share your experience.

Thank you so much
 
Hi,
Different insurance companies have different policies, but it is not uncommon for an insurance company to refuse to issue repair checks to only the policy holder when the vehicle is financed. The bank is listed as the lien holder as they own the car and you're paying them back for it. Their financial interests must be protected. Mane people cash out on an insurance damage claim, keep the money never repairing the car and then let it go back to the bank as a repo. If i were you, i'd try talking to a manger at the insurance company to get clarification b/c you're getting conflicting answers from different parties.
 
A simpler solution is to have it repaired where you are moving and let them bill the insurance company.

I suspect the reason you don't want to do this is one of two reasons. They are willing to do it for much less than the quote, and you want to pocket the difference, or you have no intention of repairing the car and want to keep the money.

If the insurance company pays for the repairs, they want to make sure it is properly done, and they aren't going to pay more than it costs, so the first would be very difficult to pull off. The second basically is not going to happen as long as the leinholder is listed on the policy. To issue a check to anyone but them and you jointly or a repair shop who has completed the repairs leaves them liable to leinholder.
 
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