Compare Rates From Top Providers
Save Up To 46% on Car Insurance
Enter Zip Code:

If there is a Loan on My Car and it is Deemed a Total Loss, Who Gets the Insurance Money?

Written by Michele Wilmonen. Posted in Ask An Insurance Question Last Updated: 02/06/2012

In baseball, the tie goes to the runner; in insurance, the money goes to the loaner.

When you take out a loan to buy a car, the company that gives you the money is actually the legal owner of the vehicle that you now get to drive. Your name will be on the registration and on the insurance policy. However, they are the ones on the car’s title and listed as the lienholder on the insurance policy that you purchased.

Their listing as the lienholder on your car is what protects their interest in your vehicle. It also tells the insurance company that they are to be paid first in the event that your vehicle is a total loss. This is so that the money is used to pay off the money that you owe them on your car loan.

The only time you will see any money from a total loss, if you have a lienholder, is if the insurance company deems the vehicle to be worth more than what you owe to the lienholder. For example, if the insurance company determines that you vehicle is worth $5,000 and you owe $3,000, you would only receive $2,000 from the insurance company.

Even though you are out of a car, your loan (or at least most of it) will be paid off.

If I’m Transporting my New Car Across State Lines and Get in an Accident, Doesn’t My Insurance Have to Pay For It?

Written by Michele Wilmonen. Posted in Ask An Insurance Question Last Updated: 02/02/2012

Don’t let your insurance company get out of paying an accident claim on a new vehicle.

You have up to 30 days to add a new car to your insurance policy. As long as you are within that time period, any accident that you get into with your new vehicle should be covered.

Now, if you do get into a car accident and the insurance company challenges you on who the registered owner of the vehicle is, you need to be prepared. Because the vehicle title will most likely not be completed yet, you will have to depend on the bill of sale. The bill of sale will show that you are the new owner of the vehicle, even if it has not been registered yet.

If your insurance company still refuses to pay the claim after you have proven ownership, you may have to get the Insurance Commissioner or the Department of Insurance in your state involved with this one. They will be able to give you any additional advice you need, or step in on your behalf with in the insurance company to get your accident claim paid.

What is the Timeframe of Receiving an Insurance Premium Refund?

Written by Michele Wilmonen. Posted in Ask An Insurance Question Last Updated: 02/01/2012

Any insurance premium refund taking more than 10 business days should be acted on.

When you cancel your insurance policy, an insurance premium refund should be processed in the insurance company’s billing system immediately. It may not be actually processed and mailed until the next day, but the request itself is done as soon as you request the cancellation.

After the company gets the refund in the mail, it can take 7 to 10 business days to get to you through the mail. This is not the insurance company’s fault; you can blame this one on the postal service.

After 10 business days (remember don’t count the weekends) if you still have not received your check, call the insurance company for the status. You can always ask for a replacement check, but be cautious. If you ask for a replacement check, the original check will be cancelled when a new check is sent to you. So, if the original insurance premium refund check does end up showing up a couple days later, it will not be any good.

Do You Have to Claim a DUI on Your Insurance Application After Three Years?

Written by Michele Wilmonen. Posted in Ask An Insurance Question Last Updated: 01/17/2012

Three years is the standard period of time insurance companies take a look at your driving record.

When you apply for new insurance, the insurance company will pull both a C.L.U.E. report and a DMV record on you. The timeframe they are looking at is generally three years. In fact, in some states, like Ohio, three years is all the insurance company gets to see.

If you are applying for new car insurance and you are sure that it has been more than three years since your DUI, don’t bother putting it on your application. The insurance company doesn’t need to know about it and you are not legally required to tell them about it. If it has been less than three years, the DUI will show on your driving record anyhow, and they will add it to your policy.

If they do end up finding something on your C.L.U.E. or driving record that you didn’t claim, your premium could be different than what they quoted without it. They could also cancel your policy if your infractions exceed their limit.

The insurance application you are filling out will ask for any DUIs during a certain time period.

A Wedgie or SafeAuto Insurance?

Written by Michele Wilmonen. Posted in Ask An Insurance Question, Research Last Updated: 01/18/2012

After watching this SafeAuto Insurance commercial, you may end up choosing neither.


Commercial opens to whistling music and a guy talking on a cell phone. A woman walks up behind the guy and gives him a wedgie. It is the same guy through the whole commercial and we see him next in a hardware store. A contractor walks up behind him and gives him another wedgie.

Save Up To 46% on Car Insurance
Enter Zip Code: