Totaled Car

[Spank]

So this is a question about a car in my name that has been totaled. 

Currently in the process of having the insurance company handle their part and then getting the GAP insurance sorted as well..

What I'm wondering is what happens if a payment is missed while all of this is going on? The car has been completely totalled and I've just signed over power of attorney to the insurance company today. The car will be 30 days late come the 19th. So I'm trying to get information now.

[Appleman]

A 30 day late will only hurt you. You are responsible for the loan while this is going on. At the very least call the loan company.

Hope everyone was OK.

[RobertEG]

Agreed.

Your responsiblity now is on repayment of the loan contract, which does not go away because of future determination of net debt once the vehicle has completed its death certificate, burial and disposition of its assets.

[RonM21]

Totally agree with both posts above. Get ahold of them if need be to keep everything current.

[takeshi74]

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@Spank wrote:

What I'm wondering is what happens if a payment is missed while all of this is going on? The car has been completely totalled and I've just signed over power of attorney to the insurance company today. The car will be 30 days late come the 19th. So I'm trying to get information now.

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Take a look at the biggest slice:

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

You don't want a late or any derogs on your reports.

[Appleman]

I know if you trade in a car and there is a pay off, it is better to continue making payments on the trade in until you get confirmation that it has indeed been paid in full.

If you happen to make an extra payment on-top of the dealer sending in the pay-off amount the bank will mail you a check for the extra you paid.

In the case with GAP insurance, a totaled car, I cannot guarantee that the payment you send today will be refunded to you. However, the 30 day late will be your best friend (not really) for years and years. Hopefully you have called them and are going to avoid the negative on your credit.

[Anonymous]

I ended up with a 30 day late this way on a motorcycle. Had no idea the check was messed up and had to be reissued by the insurance company. That cause it to go over the 30 day mark. They said it was still my responsibility to make that payment. It finally sorted it's self out and they removed it but it took sending the CEO of Harley a letter, then the CEO of Harley financial got ahold of me. It literally took months.
I'd make sure I paid it and keep in close touch with the insurance company to see how things are moving along.

[Anonymous]

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@Spank wrote:

So this is a question about a car in my name that has been totaled. 

Currently in the process of having the insurance company handle their part and then getting the GAP insurance sorted as well..

What I'm wondering is what happens if a payment is missed while all of this is going on? The car has been completely totalled and I've just signed over power of attorney to the insurance company today. The car will be 30 days late come the 19th. So I'm trying to get information now.

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Literally echoing everybody else's sentiments. Pay as normal, and you'll probably just get a refund. I've totaled 3 cars and with GAP insurance, it's always worked that way. 

[Anonymous]

A few months ago my sister had a smiliar problem and she stopped making payments. She didnt think she had to make the payments since the car was totaled and in process of so much. Well she was wrong because it all came back to bite her and its showing on her credit report. 

I am going to echo what everyone else has been saying...keep making the payments and if you are due a refund than you will get it all back. Also call the company responsable for the loan and cover yourself. Ask Questions and do what you have to. GOOD LUCK WITH IT ALL