I should point out, that for most people who finance a car, from the time you drive the car off the lot, you owe more money than the car is actually worth. The expression used is that you are “upside down” on the car. If the insurance company “totals” your auto, it does not take into account the amount owed on the car, only the “value” of the car. If you owe $2,000 - $3,000 more on the car than the insurance company pays, you may be negotiating with the finance company for terms to payoff this excess amount on a monthly basis. Note: you may want to ask about “GAP” insurance the next time you purchase an automobile.
GAP insurance pays the difference between the value of your automobile and the actual amount you owe.
Regardless of the amount you owe, if there is a lien on your automobile, you will not be the only payee on the check for the damage or total of the car; the lien holder will also be on the check. You will have to take the check to the bank or finance company where they will ask you to endorse the check and hand it over to them.
Please note: The law constantly changes, and you can't be 100% confident in the information provided above,
but feel free to call our offices with any questions: 1-800-332-1992.