Do I have to give the remainder of an auto insurance claim to the lienholder?
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Do I have to give the remainder of an auto insurance claim to the lienholder?
Got an insurance check from my insurane company and was told I need to let my auto company know that I purchased the car from that I filed a claim. The auto company says that I need to give them the remainder of the check after getting it fixed.
Asked on May 14, 2012 under Insurance Law, South Dakota
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
Whether or not you are obligated to pay the lien holder on the loan secured by your vehicle the balance of money paid from the insurance check after the vehicle is fixed depends upon what the loan agreement states.
As such you need to read the loan agreement you have carefully. The document will state what you are contractually obligated to do with the excess funds from your insurance carrier.
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