Auto Insurance Company Galveston, Texas TX
Filed under: Cheap TX insurance, TX car insurance, Texas SR22
Reader’s Question:
I purchased new car and I put a collision coverager on it. I am financing part of the car’s purchase price through a finance company. My question is why does the finance company get paid the full amount of the value of the vehicle if the automobile gets into a collision? I mean if they get the full amount of the vehicle, I will get nothing meaning whatever I paid for the vehicle will be lost and Ill be empty handed? I live in Galveston, TX.
John
Galveston, TX
Your finance company holds the title to your car until your loan is paid or satisfied. If your car is totaled, the check will most likely be issued both on your names. Whatever amount is left after your loan is paid would go to you. Your insurance carrier in Galveston, TX will determine the value of your car at the time of a loss and pay that amount to the finance company and to you. Most of the time, as soon as you leave the dealership the value of your car depreciates. So you may be upside down as soon as you leave the dealership lot if you were to get into an crash. You can buy GAP insurance in order to protect yourself from that type of loss. This will cover the difference of what you paid for the car and what the actually value is.
Tags: auto insurance