Recommended Posts

Yesterday I got into an accident, and based on my description over the phone, my insurance agent (GEICO) told me that there is a high possibility of total loss. However, I won't be sure until a GEICO inspector takes a look at it. The accident took place on 12/22, so I won't get any news until after the Christmas holiday weekend. (Monday would be 12/28)

I'm currently over a month (but less than two) late on my car payment. When I called my loan company to tell them what had happened, they told me that my car was currently in "collections/repo status" and that my car insurance may deny my claim based on this fact, so I need to make my payment asap.

Does anyone know how much of what my loan company is telling me is true? Could they just want the money as soon as possible because the insurance process takes too long? I understand that if I am upside down on the loan, I'm still on the hook for the remaining balance, but, again, I wouldn't know if that is the case for sure until after the inspection.

Bottom line: am I really in "collections/repo" status if I am still making payments to my loan company and not a collections agency? And if I am in that status, is it true that GEICO may deny my claim due to it? I'd like to save this money for the holidays (and possibly a new car), if the insurance can take care of it instead of me.

Share this post


Link to post
Share on other sites

Bottom line: am I really in "collections/repo" status if I am still making payments to my loan company and not a collections agency?

 

The lender does not have to use an actual collection agency for the account to be considered in collections.  ANY credit account that is past due over 30 days is going to be considered in collections and when it comes to a car loan after 30 days repossession is a very real possibility.  So yes, if you are more than 30 days past due you can be in collections/repo status regardless of who the payments are made to.

 

And if I am in that status, is it true that GEICO may deny my claim due to it? I'd like to save this money for the holidays (and possibly a new car), if the insurance can take care of it instead of me.

 

The one to ask if this is true is GEICO.  If you are behind on your car payment(s) and just totaled the car the last thing to be saving money for is the holidays.  With 30+ day lates on your credit getting a new loan at a reasonable interest rate is unlikely.  I would be looking to get the credit straight to avoid long term high interest loans in replacing the car.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this