Auto Insurance Claims: insurance claim, lienholder, sharilyn


Question
Can the insurance company settle with lein holder and bump you out of the way? Even if the settlement requires you to pay a substantial amount?

Answer
Hi Sharilyn,

When a vehicle is declared a total loss, the insurance company is required to pay the lienholder. If the total settlement is more than you owe, the will first pay the lienholder and send you the balance. If the settlement is le less than owed to the lienholder, they will pay the lienholder and then you will need to pay the balance to the lienholder.

I hope this helps
Richard Hixenbaugh