Auto Insurance Claims: Total Loss - getting check to get title, settlement money, insurance company

Question
I have a loan through a credit union for my car.  The car was totaled.  The insurance company and I have agreed on a settlement but the insurance company said they need the title before they can cut the check.  I gave the title to the credit union and they can not release the title until I pay off the loan.  Catch-22.  What can I do?

Answer
Hi Jeff-

I would first try to explain the situation to the insurance company.  I'm sure this isn't the first time they have come accross this.  Maybe they can call the credit union and send the money directly to them.  If all else fails, I guess you could borrow the money from somewhere for 2-3 days to pay off the loan and pay it back with the settlement money when you get it - but hopefully your insurance company won't let it come to that - if they do, maybe it's time to look for a new one.

smaughan@farmersagent.com