Auto Insurance Claims: Auto Insurance, gap insurance, sharilyn

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