Auto Insurance Claims: automobile total, ford motor credit company, ford motor credit

Question
I owned a 2002 ford escape.  It would have been paid for in September of 2007. The suv was total in a car accicent.  At the time it was total I owed around $6,600 at the time it was total.  What happens when a car is total and it is not paid for? Wjs5hwill my insurance company just pay off ford motor credit company the balance that was owed on the vehicle at the time it was total? What will I get as far as payment if anything?

Answer
The insurance company only owes you the fair market, cash value of the vehicle.  This has nothing to do with the loan balance.  If you owe more than the vehicle is worth, then you will be responsible for the difference.  If you have purchased what is known as Gap insurance, this separate insurance will pay all or a portion of the difference.  This is generally an optional coverage that is offered by dealerships at the time of the vehicle purchase.

If you owe less than the loan balance, then the lien holder will get a check for what is owed and you will receive a separate check for the equity.  No checks will be released until the lien holder agrees in writing to surrender the title for the settlement check and you have released possession of the vehicle.  This process generally takes 3-10 days.

Good luck!