It\’s one of those things we never want to think about; an auto accident. In fact, in addition to safe driving practices, and making sure you obey all laws of your road, it\’s probably better not to think about being in a car accident at all, since the vast majority of bad drivers don\’t actually experience one for a day to day basis. Annually, below one percent of American drivers are involved in a fatal car accident, and when you factor in non-injury accidents, the time stays below five percent.
Many of yourself might be looking up payday loan requirements or considering title loans from CASH 1 to help you deal with some tough financial times, but without doubt, you might be worried about what might happen if you still owe money on the loan, but get into a car accident. What follows is not meant to describe the precise process of dealing with a car accident in example of a vehicle which has a loan out on its title. This can be meant to give you some idea with the will likely happen, and some actions to take to protect yourself financially inside unlikely event you are in a car wreck while there is a lien on the automobile\’s title.
What to Do When you Total Your Car and Still Have a Title Loan
John Doe contains a 2003 Ford Mustang with over a hundred thousand miles. Bigger taken very good care of it since he purchased it used from the dealer in 2011. It is both mechanically sound as well as nearly perfect in appearance, with few dings as well as a scratch or two. Months ago, John came into some financial difficulty and needed some dough to help pay the bills. He acquired a title loan in Mesa?approximately three thousand dollars, and has roughly five months left in order to the loan.
But last week, John was crossing an intersection when another driver ran a red light and hit the passenger side of his car. Fortunately, no person was hurt and there wasn\’t any one else in the car with John. Right after a short investigation, the local traffic mother and father determined the accident was the additional driver\’s fault. This is great, but John still owes over a thousand dollars on his title loan. What will he do now?
Have Full dental coverage plans Insurance
Before you consider taking out a car title loan, consider getting full insurance coverage for your automobile. Many people who are not making payments on their car carry only liability insurance, and do not have collision insurance.? Having full coverage is a good way to protect your time and money of your automobile, especially if you get a title loan on the vehicle.
John immediately calls his insurance and them all the information from the police report. Since police have determined the other driver was at fault, and the insurance adjuster has declared John\’s Mustang an overall loss, the other driver\’s insurance has agreed to reimburse John for the fair value of the car.
Know What Your automobile Is Worth
Even if you don\’t take out a title loan, it\’s always a good idea to know the importance of your car. A good place to repeat this would be the Kelley Blue Book website. There you may input all the necessary information to find out which your car is worth, especially if you take part in an accident. Again, even if you do not take on out a title loan, you\’re better prepared to deal with insurer offers to settle if you know what your car or truck is worth. And let\’s be clear: insurance adjusters and their companies are not in business to give away money for free. They decide your vehicle is worth less than what you located on the Blue Book website, they\’re going to offer you the lower settlement. (Another tip: for those who only have liability insurance on your car, then you\’ll definitely most likely have to deal with the other driver\’s insurance yourself. If it is the case, always speak to their adjuster in a very calm and friendly manner. Never threaten for the lawyer unless you absolutely mean it. If you are using the word \”lawyer\” as an empty threat, another insurance company will likely delay your reimbursement, and yes it could take months to collect your settlement).
John has gotten liability coverage on his car, so he must deal with the adjuster himself. If he had full coverage, his own insurance company could have reimbursed him a fair price for his vehicle and then sought payment from the other driver\’s insurance. John informs the adjuster that he has a loan on the title of his vehicle (they refer to it as a \”lien\” but this is not necessarily meant for a negative).
This does not come as unexpected to the adjuster. Many people have auto title loans on their vehicles, even when they go into accidents.
After a period of investigation, the adjuster determines John is qualified for four thousand dollars in compensation for his vehicle. John, having done his homework, knows his Mustang is actually worth just over four thousand, five hundred dollars. He informs the adjuster of your and offers to send a link showing his research done at Blue Book. The adjuster tells John this is certainly unnecessary, as the insurance company is ready to offer him the amount he has quoted. It is at this point John informs the adjuster from the vehicle title loan.
Reach a Settlement before mentioning Your Title Loan
If you have a similar situation, do not volunteer any information, but alternatively answer the adjuster\’s questions when asked. Politely tell the adjuster you\’d like to have to reach a settlement figure first prior to discuss any particulars, for example whether there is a lien about the vehicle.
The adjuster then asks John for home elevators the company holding the title to your vehicle. They inform him that they will be making a payment to the auto title loan company directly and then provide whatever is left. John agrees and also the matter is settled.
Liability Coverage Are not going to Help If Your Car Is Totaled
If John only had liability coverage on his vehicle, and he was found at fault for the accident, create would have not have received any compensation for that loss. He would have been stuck with not a car and the remaining balance on his loan could well be his to pay off. It is strongly advised to experience full coverage on your vehicle if you intend to take out a title loan on it.
If you find you are in need of a financial boost, come see CASH 1 for any personal installment loan, or maybe a Las Vegas title loan (on your fully covered automobile). We\’ve services in Arizona and Nevada. ?