Q: Vehicle was deemed a total loss, but I want to buy back the vehicle. I still owe on the loan.
The total settlement number they gave me would be more than I owe, but the salvage price to keep the vehicle would make the new amount less. I understand that would leave me with the remaining loan balance. Adjuster told me that they won’t release any funds until the loan is paid in full. I was expecting to use those funds to pay the biggest part of the loan and I would pay the rest. Why are they insisting the loan be paid off if I’m keeping the vehicle? They would’ve technically already been paid for the vehicle. I’m just confused and they couldn’t explain it better when I called.
A: A Kentucky attorney could advise best, but your question remains open for a week. You'll probably need to go through the figures with them in more detail than is possible here. But the basic principle is that keeping the vehicle will reduce the payment. If a vehicle is old and low value, it doesn't make too much difference. With later model vehicles, the salvage value could be a more significant offset from the PD payment. If the carrier can't clarify the reconciliation of figures to your satisfaction, one option could be to review the file with a Kentucky accident attorney well versed in PD claims, in particular, those with leased or financed vehicles. Those PD claims can be more complex. Good luck
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