when a verhicle is totaled and there is still a remaining balance then is the owner required to pay the vehicl?
- 1949 FrazerLv 67 years agoFavorite Answer
Unless the insurance covers the vehicle the owner still has to pay for the vehicle.
- Smokies HikerLv 77 years ago
Of course. The lender is entitled to receive whatever the balance of the contract of the loan is. If you owe $5,000 on a car that's worth $3,000 when it's totaled out because of an accident, you will receive the $3,000 for the value of the vehicle, and you must still give the lender the $5,000 owed to them.
- Scott HLv 77 years ago
Yes, the owner is obligated to repay the loan. If the insurance settlement is enough to pay off the loan, great. If not, the owner pays the remaining balance. If there is no insurance available, the owner pays the remaining loan balance.
- Bob BLv 77 years ago
Of course. The lender is entitled to get his full value for the loan. If the insurance company payment doesn't cover the loan balance, you're on the hook for it.