Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Once a car has been totaled in an accident and the insurance co. declares it a total loss, what happens with the title and payments on that car? Can you just let the car sit in your driveway without having to pay for it? If you send it to a scrap/junk yard, does the legal owner HAVE to sign the title first?
if it is totaled, the insurance company takes possession of the car and they auction it or sell to a junkyard. They determine what the value of the car is, then they pay off the loan and you get anything left.
You usually have the option of buying the totalled car back from the insurance company. They will tell you what the salvage value is, then deduct that from whatever is left after paying off the car. If you can get the car fixed for that, its all good, assuming it is something that can be fixed safely.
I bought a salvaged car once for a kit car build and for some reason did not get the title which I had to explain to the registry almost 2 years later that the 1990 5.0 mustang no longer existed. I had to buy a new title for it.
Sherriffruman is correct, the insurance company will pay off the loan first and you will get what is left. The car is then brought to a auction and sold to a scrap yard or to a guy like me that needs the engine etc..
Watch out they don't build them like they used to. Today even the slightest crash can damage a cars frame beyond what it would cost to fix over replace. You don't want a car with a bent up or compromised frame.
Once a car is issued a salvage title and then you decide to fix it, it will need to be inspected, in the case of Mass. by a state police garage that will issue you new paper work to take to the registry.
Once a car has been totaled in an accident and the insurance co. declares it a total loss, what happens with the title and payments on that car? Can you just let the car sit in your driveway without having to pay for it? If you send it to a scrap/junk yard, does the legal owner HAVE to sign the title first?
To put what was said above in different words (might be easier to comprehend):
You use a bank to get a loan for a vehicle ~ they are the lien holder on the title, you make payments
Car is in an accident, insurance offers to "total" it and you accept
Insurance company makes payment (that you negotiate) to the Bank (usually) or you (rarely) and then expects to receive the car and the title in return. They basically buy the car from you in as-is condition.
You then pay off the remainder of the loan (if you still owe on it), or receive a small check of whatever is remaining after paying off the lender on the vehicle. If you own the vehicle outright, then you get the entire settlement less your deductible.
At this point the insurance company is in possession of Both the vehicle and the title/paperwork (legally if not physically ~ they WILL physically collect it at this point).
If you want to retain the vehicle, then the insurance company will normally offer a "buy back" price. This normally works out to be a reduction in the settle money paid to you, and Legally the paperwork still is transferred to the insurance company (so you're still responsible for paying off any loan amount), where it's then stamped as "salvaged", which just means that an insurance company made a total-loss payout on the vehicle. This may or may not be an issue, as some states won't allow salvage titled vehicles on the roads <full stop>. Others allow them but require documentation that it was repaired by certified people with certified parts. Still others don't care and treat it like any other title. It's also worth knowing that some insurance companies (not sure if this is Company specific or State specific) will not insure a vehicle with a salvage title for more than liability.
In all cases, the loan must be paid off by the person who accepted that loan. And the vehicle becomes the property of the insurance company.
Woah! This stuff goes way over my head. Maybe I should've just posted why I was asking the question.
I'm asking because last year I was in an accident where the car I was driving was totaled. It was the other driver's fault, but the insurance co. is a $&!*@% and decided it was my fault even though there was hard proof it was not. The car, however, was not mine as it belonged to a relative I was doing an errand for. The car was eventually towed to my parents' house because my father was going to sell the undamaged parts and so he got the title from the relative who owned it. I was told that the car was listed as totaled or whatever for the insurance and whatever else. I wasn't involved in that part and don't know anything about it. No one ever mentioned anything about the insurance co. taking possession of the car.
Recently, because of my father's ongoing health issues he decided to have the car taken to the scrap yard. He gave them the title and that was that.
Because I don't understand how these things work I just wanted to make sure that the relative hadn't been paying anything on that car this entire time my parents had it. I'm also wondering whether the relative will be notified for any reason now that the scrap yard has the car and the title (I guess it's still legally in their name). I didn't want to call and ask them because it's a sore subject for me because their insurance co. royally screwed me (and them) over.
BTW, the car was 10+ years old and presumably already paid off, if that matters. It was also not fully covered because of it's age.
Woah! This stuff goes way over my head. Maybe I should've just posted why I was asking the question.
I'm asking because last year I was in an accident where the car I was driving was totaled.
BTW, the car was 10+ years old and presumably already paid off, if that matters. It was also not fully covered because of it's age.
What you are saying is you don't know if there was a lien on the car title and payments by your relatives.
But if you are correct that the car was totalled, then all of that was finalized by the insurance company and the legal owner of the car; ie, the insurance company paid off per the policy, paid the loan company (if any), forwarded any money left over to the legal owners after paying off the car, and got title to the car.
Because the insurance company didn't take possession of the car, it sounds like your relatives "bought" the totalled car back from the insurance company. Then the car was brought into your dad's possession to dispose of. Your relatives may or may not have signed over the car's salvage title (this is the title that would have been issued after the car being totalled) to your dad.
At this point, the car and title went to a boneyard. They will not notify the legal owner on the title of the disposition of the car.
Probably best for you at this point to walk away from the situation.
Because the insurance company didn't take possession of the car, it sounds like your relatives "bought" the totalled car back from the insurance company. Then the car was brought into your dad's possession to dispose of. Your relatives may or may not have signed over the car's salvage title (this is the title that would have been issued after the car being totalled) to your dad.
Huh? I must be misunderstanding something. Why would they have to buy back the vehicle from the insurance company? It's the relatives' vehicle to begin with.
My understanding was that after the vehicle was brought back to their house, they were just going to dispose of it at the junk yard as they wanted to get rid of it ASAP. Then my dad took possession of it. We were given the regular title, which wasn't signed. What is a salvage title?
I am so frickin' pi**ed now. It sounds like someone screwed up, again. I wonder if I should find out what's going on or just ignore it and move on? I hate to think that my relatives (that owned the car) got screwed over because of everyone else involved in this.
Huh? I must be misunderstanding something. Why would they have to buy back the vehicle from the insurance company? It's the relatives' vehicle to begin with.
IF the vehicle was totalled by the insurance company, then it becomes their property in exchange for the payment they make to the insured owner. At that point, it's no longer your relatives vehicle, the insurance company owns the car.
The former owner may then have an opportunity to buy the vehicle back from the insurance company. But it won't get a "regular" title, it will be an "S" title, which is a salvage title issued for a vehicle which has a total loss declaration and payout by an insurance company.
It sounds like you don't have all the facts lined up about this car:
if it still had a regular title, then the car wasn't totalled by the insurance company.
if it has an "S" title, then the car was totalled and your relatives had to buy it back from the insurance company.
But at this point, with the car having been disposed of ... you should probably just walk away from the whole affair. There isn't any money left in this deal, even if you think that your relatives weren't treated fairly ... they were the insured owners, not you.
I'm asking because last year I was in an accident where the car I was driving was totaled. It was the other driver's fault, but the insurance co. is a $&!*@% and decided it was my fault even though there was hard proof it was not. The car, however, was not mine as it belonged to a relative I was doing an errand for. The car was eventually towed to my parents' house because my father was going to sell the undamaged parts and so he got the title from the relative who owned it. I was told that the car was listed as totaled or whatever for the insurance and whatever else. I wasn't involved in that part and don't know anything about it. No one ever mentioned anything about the insurance co. taking possession of the car.
Recently, because of my father's ongoing health issues he decided to have the car taken to the scrap yard. He gave them the title and that was that.
Because I don't understand how these things work I just wanted to make sure that the relative hadn't been paying anything on that car this entire time my parents had it. I'm also wondering whether the relative will be notified for any reason now that the scrap yard has the car and the title (I guess it's still legally in their name). I didn't want to call and ask them because it's a sore subject for me because their insurance co. royally screwed me (and them) over.
BTW, the car was 10+ years old and presumably already paid off, if that matters. It was also not fully covered because of it's age.
To me, it sounds like your relatives did not have collision insurance on it, and there was no insurance payout on it since the other driver's insurance refused to pay. Your relative's insurance did not do anything for them since they did not have collision coverage. If the insurance did not make a payment, then they do not take possession of the car. So at that point, the car is your relative's, to do with as they wanted, and they got screwed because of the other company's refusal to pay. All they could do is sell the parts like your dad tried, or sell it to a salvage yard. All salvage yards need is a title to accept a car, and it is possible the title was signed by your relatives when they gave it to your dad.
Basically, your relatives lost money in the car's value because of the wreck. That is the gamble you take by not carrying full coverage on older vehicles.
To me, it sounds like your relatives did not have collision insurance on it, and there was no insurance payout on it since the other driver's insurance refused to pay. Your relative's insurance did not do anything for them since they did not have collision coverage. If the insurance did not make a payment, then they do not take possession of the car. So at that point, the car is your relative's, to do with as they wanted, and they got screwed because of the other company's refusal to pay. All they could do is sell the parts like your dad tried, or sell it to a salvage yard. All salvage yards need is a title to accept a car, and it is possible the title was signed by your relatives when they gave it to your dad.
Basically, your relatives lost money in the car's value because of the wreck. That is the gamble you take by not carrying full coverage on older vehicles.
Yes. Your only recourse in that situation is to take the other insurance company to court. And if you don't have a physical injury, you'll be doing the pursuing on your own.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
It sounds like someone screwed up, again. I wonder if I should find out what's going on or just ignore it and move on? I hate to think that my relatives (that owned the car) got screwed over because of everyone else involved in this.
