Who owns the car in case of catstrophic loss?

[gt350shelb]

who gets 1st shot at car

i would imagine the insurance company 1st
but what if there is a lien on the vehicle?

Does bank have 1st right of refusal before the owner?

Due to the increasing values of the cars it could make for a bigger  profit  for the bank if they bought it and flipped it .

just a thought     

[Bill]

who gets 1st shot at car

i would imagine the insurance company 1st
but what if there is a lien on the vehicle?

Does bank have 1st right of refusal before the owner?

Due to the increasing values of the cars it could make for a bigger  profit  for the bank if they bought it and flipped it .

just a thought 

Phil,

   It's my understanding there is a 1969 Shelby GT500 convertible, total loss, that may be wrapped up in such a debacle. Pete knows all of the details to date, maybe get with him to see if anything has transpired in the last few months since we last conversed.

Bill

[Coralsnake]

In the case of the "Huricanne Superbird" I believe the owner kept the car and never filed a claim. He sold the damaged car and its now under restoration. If that car had a lien, he would have had to paid that off first.

Many states have free online databases where you can confirm ownership. You simply need a  license plate number or VIN.

I'm not sure if you are interested in any certain car, but sometimes you can call the bank or finance company directly and they will confirm ownership or loan status.

Individual states also have "official" information (NCIC) which maybe more up to date than online registries. These are only be available to official "investigators" like police officers, detectives and some security personnel, etc.

Certainly clubs like SAAC also record this information, but they are dependent on honest members and timely information.

In summary, I think the owner has first rights, unless the policy says otherwise, then the bank needs to be paid (if these is a loan), then the insurer.

[vtgt500]

A year ago my early Bronco was consumed in a fire.  The Holley Sniper fuel injection pressure regulator ruptured creating a fireball.  My wife and I were lucky to escape.  Emptying a 10 lb, P-type extinguisher intended for petroleum fire was futile.

The Bronco was a 15 year build.  Money and labor were no object.  Completely without compromise at every detail.  Perhaps being one of the best engineered and assembled in the country.  (I own an aerospace manufacturing business.) Before putting it on the road, insured it for $80K thru Safco.  All they required were detailed photos of the vehicle and garage it was stored.  The fire occured the 2nd week it was registered.

I had a check for the full amount within two weeks.  A car hauler dispatched by Copart soon arrived to drag the hulk away.  Calling Copart learned it was at a lot in Mass and I could bid on it when auctioned.  A day or so later got a follow up call from Safeco.  The gal asked if I was pleased with the settlement.  I replied I was more than impressed having expected to litigate.  She asked if I had any questions to which I asked about the potential for buy back.  She said "absolutely." That before it was dragged away I should have been given the opportunity of a negotiated, residual value.  She suggested $1000 with Copart delivering back to my home.   Hell yeah!!!!!  (The engine alone had $20K invested)

Today, a full restoration is in process.

[Coralsnake]

Really sorry to hear this. It must be very frustrating after all that time. I'm very glad no one was hurt.

[vtgt500]

Really sorry to hear this. It must be very frustrating after all that time. I'm very glad no one was hurt.

Thanks for the good wish.  For reference to other, classic vehicle owners, this is the extinguisher type mentioned.  I was amazed how well it knocked down the massive flames.  But being unable to get thru the wall of flames to open the hood was impossible to fully extinguish before emptying.

I hesitate to suggest the obvious, but a premium extinguisher is the cheapest insurance you can buy.  As related to me, you may never need it, but rescuing someone trapped in a burning car can avoid a lifetime of nightmares.

https://www.amerex-fire.com/upl/downloads/library/amerex-purple-k.pdf

[A-Snake]

who gets 1st shot at car

i would imagine the insurance company 1st
but what if there is a lien on the vehicle?

Does bank have 1st right of refusal before the owner?

Due to the increasing values of the cars it could make for a bigger  profit  for the bank if they bought it and flipped it .

just a thought 

Hagerty calls it "Cherished Salvage Coverage"
https://www.hagerty.com/insurance/classic-car-insurance/additional-coverages/cherished-salvage-coverage

[98SVT - was 06GT]

Hagerty calls it "Cherished Salvage Coverage"
https://www.hagerty.com/insurance/classic-car-insurance/additional-coverages/cherished-salvage-coverage

If the car is deemed a total when you take the check the insurance company owns the car. Cars with a loan on them have 2 owners. The registered owner who has possession of the car and the legal owner who actually owns the car. If there is a lien on the car the bank is the legal owner so they get paid first. Even if there is only $1 owed on the car the bank in actuality owns it and controls it's fate. Only when the lien is paid completely does the ownership transfer to the registered owner. The insurance may or may not offer the owner the salvage. There is a negotiation as to value. Insurance will ask what they expect the car will sell for in the public market. It's their job to make your crash/fire effect the company bottom line as little as possible.
Hagerty Cherished Salvage is a neat product. In a total loss they pay you 100% of your agreed value and you get to keep the salvage. They charge 15% extra on the damage part of your insurance but that isn't much. Our annual Hagerty bill for the 29 Model A and 2004 Tbird is under $400 so for less than $60 we could keep either car.

[gt350shelb]

I guess it could be compared to the housing market a few years back where banks were foreclosing getting paid by  the mortgage insurance company and taking the property . then not reselling them  till market came back .


You buy the car for $50,000
make payments for  4 years
lets say car is 50% paid   $25000

car is destroyed and its insured for 50k


bank gets their 25 k

owner gets 25 k

what if bank says  hey that collector car in its wrecked condition is now worth 50k buys it back for $1000

now the bank makes 75k on that loan plus the payments you made +25 k  looks like  a win for the bank at $100k