Question on Car that was Totaled

What is the name of your state? Pa

I recently had an accident that totaled my car. Its a 2006 and I paid it off, and in the process of waiting for the title to come from the finance company. I heard rumors of people telling me that insurance companies give you 50% of the total value of the car untill they get the title when its totaled. Is this correct? I dont know how this process works.

So you're thinking that insurance companies want to do double the amount of work on each claim?

No. I was just asking what the procedure is when a car is totaled. I was told that 50% is paid out before they get the title, and the rest is paid out later. I'm just clarifying if thats the case.

sutliffhl21 said:

No. I was just asking what the procedure is when a car is totaled. I was told that 50% is paid out before they get the title, and the rest is paid out later. I'm just clarifying if thats the case.

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Sounds like double work to me.

Ask your insurance agent.

There is no percentage. If the car is totalled, you will be given the fair market value for the car and you also give up ownership of the vehicle. The percentage of the value to determine if a car is totalled is up to the insurance company, some have a higher percentage than others. If you want to keep totalled vehicle, you can buy it back for it's value as a total and will have to reapply for a new title after the vehicle is made legal of operate on the road. In your case, you would be issued a salvage title.

sutliffhl21 said:

What is the name of your state? Pa

I recently had an accident that totaled my car. Its a 2006 and I paid it off, and in the process of waiting for the title to come from the finance company. I heard rumors of people telling me that insurance companies give you 50% of the total value of the car untill they get the title when its totaled. Is this correct? I dont know how this process works.

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Each insurance company has its own procedure for handling total loss settlements, but normally they pay the loan out of the settlement and, upon receipt of the title, pay you the balance of the settlement. Since you decided to pay it off, I doubt they will pay you anything until you give them the title. The easiest way to find out is to ask them.