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Gerald, Esq
Gerald, Esq, Lawyer
Category: Legal
Satisfied Customers: 3727
Experience:  30 years of experience
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WHEN a INSurAnCe COMPANY DElares your car tOTAled and theyPay

Customer Question

WHEN a INSurAnCe COMPANY DElares your car tOTAled and theyPay you BUT firsT tHEY WAnt the titel weLL im BUyiNg the CAr ANd i STill OWe ON iT can THEy just CUT THe CHEak tO The peoPlE IM BuYinG it from
Submitted: 2 years ago.
Category: Legal
Expert:  Gerald, Esq replied 2 years ago.
Thank you for using Just Answer. I want to provide you the best service I can. Please feel free to ask any follow up questions you have.
I am an attorney with 30 years of experience; I hope to provide you information that will help you in resolving your question.
When you borrow money to buy a car the lender is called the lien holder. If you look at the title on the car you will see a section where the lien holder is listed. That section usually has language that states that the lien holder is the "first payee."
The first payee gets paid first when ever there is a pay off of the car. This includes when an insurance company pays off on a totaled vehicle.
So the short answer is YES the insurance company should pay the lender first to pay off the lien on the title.
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Please note: Information is educational and not given as legal advice. Only your local attorney can give legal advice. I can't establish or accept an attorney-client relationship with you. All posts are available for public viewing.