My totalled car is in my parent’s name, who should get the insurance money to replace it?
In: Cars Insurance
26 Mar 2010my car was totalled, by fault of the other driver. i had made all the payments on the car but becuz i have bad credit my dad put the loan in his name, n my mom was paying the insurance for me, but never expected me to pay her back becuz my parnets pay for my brothers insurance too.
since the car n insurance is in their names, and they agreed to pay the insurance, they now feel entitled to half the moeny i am receiving to replace my car. i dont want to benefit from the money from insurance, just replace the car which i lost. my parents feel that the car is theirs, technically, so the money is theirs to do as they please.
my question is…is it morally, and/or legally right for them to profit off of this accident?
my parents and me also wrote an agreement that the cars mine, that i’d make all payments, and that theyd pay insurance. that at the end of the financing, it would be signed over to me. but we never said anything about this sort of situation in the contract
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27 Responses to My totalled car is in my parent’s name, who should get the insurance money to replace it?
sugarplumfaerie52686
March 26th, 2010 at 2:05 am
legally they are entitled to it if they wanted it…..but TECHNICALLY you get that money to fix/replace your car and thats what it should be used for
andrewgengler
March 26th, 2010 at 2:13 am
Your parents. If it is titled in your parents name.
mommy2savannah51405
March 26th, 2010 at 2:27 am
they get the money..but hopefully they will go buy you another car
stickan8
March 26th, 2010 at 3:26 am
your parents should get the money….and not give it to you. get a bike instead. cheaper than a car.
Pratik
March 26th, 2010 at 3:35 am
Split it between the three of you, since you made payments on the car, your dad got the loan to make the car yours, and your mom did the insurance. All three are required for the car to be in your garage.
denise4cm
March 26th, 2010 at 4:32 am
The money should ALL go to the replacement of the car. That is what it is intended for. Your parents are wrong if they want to spend any of it on themselves.
lilbibitch69
March 26th, 2010 at 5:09 am
your parents bk the car is in they name but you should get at least half of the money bk it was your car to.
realistic human
March 26th, 2010 at 5:24 am
The money is legally theirs so they can do with it what they wish. For them to give you half of it is a gift. Count your blessings. This is the penalty you have to pay for ruining your credit. Next time fend for yourself and you may reap your own rewards.
oreobabylove
March 26th, 2010 at 6:21 am
Wow you got screwd But to awnser your question yes it is thier car and there legal disission on what to do with the money. This is a great lesson in life for you dont trust anyone when it comes to credit. If I were you I would take the half that they are willing to give you because they dont have to do that much and move on
PeppermintandPopcorn
March 26th, 2010 at 6:32 am
The money is theirs, the car is theirs and the insurance is their too. They were accepting a lot of risk to have you drive a vehicle, that legally is theirs.
It is legally their money.
Next time, get a vehicle you can afford without making payments and do you own insurance.
Ferosia
March 26th, 2010 at 7:06 am
Since the car is in their name and they paid the insurance they are intitled to the money, it sucks, but legally that’s the way it is. Pick out a car and give them what is left over. Do they really not want you to have a car that badly, b/c you will only bug them to use their car all of the time. Point out that you really need a car, if you have enough for the car, why worry about it, it is just reimbursing them for insurance anyways.
Juggernaut
March 26th, 2010 at 7:25 am
The parents may pay for the insurnace, but depends on who the car is titled to
jrhughes3068
March 26th, 2010 at 7:33 am
The owner of the car (Your Parents) are most likely
also the ones that make the Insurance payments.
In that case, he or she that pays the bills gets the
cash.
lauree_anne
March 26th, 2010 at 8:16 am
legally they have the power, morally they are your parents and you have paid for the car, insurance isn’t to get money back that you have put in on insurance its to protect the car and when they did that they should have realized its your car if your making the payments on it, you should have the replacemtent money i would say maybe if there is something left it could go to them but your parents should stop acting greedy and money hungry
lexxy l
March 26th, 2010 at 9:07 am
parents, because they put their name on a loan for you and your parents are paying for your insurance. Just tell them that if the same thing happens to your brother’s vehicle that your parents need to get the money from your brother too. You wouldn’t have gotten the car if your parents hadn’t signed the loan for you. Consider yourself lucky because my parents wouldn’t sign any loans for me. They wouldn’t pay for my college I had to pay the loan off myself.
Whiskeytangofoxtrot
March 26th, 2010 at 9:38 am
The check should be made out to the “financier” of the car and the “owner”. Example “First City Bank and John Smith”.
Unless the car is owned out right. If that is the case, then the money should be split between the parties.
Lyndy
March 26th, 2010 at 10:32 am
You should get the money to replace your car, your parents don’t need a car, you do. You should get ALL the money and use it to get a new used car
Junior A
March 26th, 2010 at 11:06 am
The car is under their name. Nothing you can do. They should take back whatever expenses they agreed to pay and give you the rest of the money to fix your car. It is your car, but it is under their name. Legally it’s not yours.
Nord_wulf
March 26th, 2010 at 12:02 pm
If your mom paid the insurance, then she should get the check, because without insurance you wouldn’t be getting squat.
However, you paid for the car and you should be able to replace the car with that money. It should not be looked as as gain for them. But to keep everyone happy, you should give your mother the insurance money she has paid to date, and learn from this and pay your own insurance now.
Also if you don’t have the credit for a new car, get a used one or get your someone to cosign for you not buy it under their name.
ANDREW L
March 26th, 2010 at 12:10 pm
Legally it is your parent’s car and they get the money because of that. Now, morally they should help you get another car.
Shiara
March 26th, 2010 at 12:47 pm
The money goes to the insurance holder, because it’s the insurance company who is issuing the check. You’re parents shouldn’t capitalize on that money. It’s there to replace what was lost.
That’s BS, why do they all the sudden want it? Don’t they want you to have another car? If they feel like you owed them then they should have had you start making payments before it was totaled.
They can do whatever they want, legally since it’s in their names. They can just say that you were borrowing it and you can’t prove it any differently.
Don’t let money and greed ruin a family. Ask them to at least give you what you had put into the car, like payments, etc… Then go and get your own car that you can afford by yourself and get your own insurance.
Middy S
March 26th, 2010 at 1:33 pm
If you are considered a minor, then your folks have to get the money, and obviously even more so if the car is in their name. It really is a matter between you and your folks, and I am reasonably sure they will help you get another car if they bought that one for you.
Even if they hold on to the cash and any so called profits, it is still their car, and yes even if you don’t agree with how they are doing this you are not in too much of a position to complain at this point in your life because after all it WAS your parents who helped you get the car.
All I feel you are entitled to is to recoup all of the amount of your actual payments if that amount does not exceed the settlement. This does not include what you spent on improvements and operating expenses.
Be happy with whatever you get from them and don’t complain about it or bite the hand that feeds you unless you want to drive them away. Move on with your life and in a few more years you can (hopefully) buy all the cars you want in YOUR name! It is not worth the possibility of creating a life long rift with your folks over a few thousand bucks. In the long run this is no big deal, unless you make it into one.
Be grateful that they are willing to share some of the settlement with you. It could be a lot worse, many mean parental types would not give their kids a cent, or even help them get a car for that matter.
Move on and don’t be bitter and put this behind you, in a few years it won’t be a big deal. Good luck.
mark w
March 26th, 2010 at 2:14 pm
You state that the car was in your parents name and you are covered under their insurance. At this point the car belongs to your parents. Now, if you can prove that you gave them money for the payments, like canceled checks, or a wittness that can say they saw you pay your parents, then in your state you may be declared the owner and entitled to all of the money. Sorry, I’ll bet you gave them cash. You have to live with what your parents decide….If you have a contract, was it signed and notorized. Again you have to prove that your money paid for the car. Having your parents pay for insurance on the car only means that the money they receive should go to replace the car, thats what the insurance covered.
CowboyBill
March 26th, 2010 at 2:44 pm
This is an ethics question. This is also what happens when you don’t buy your own car! Your parents are nothing more than a bank in this situation. What do you think a bank would do? (they also don’t pay for insurance).
Doofus.
mktobyjo
March 26th, 2010 at 3:14 pm
The money ususally goes to whosever name the policy is in.
Chris
March 26th, 2010 at 3:41 pm
The insurance company will pay the registered owner and/or lienholder. You will not directly get any money from the insurance company. What your parents work out with you from there is between you guys.
kevin e
March 26th, 2010 at 4:34 pm
legally the belongs to your parents. the risk was your parents as well. the insurance co under normal circumstances sends the check to the finance co. if there is any overage (which almost never happens) will be sent to the insurance policy owner. you dont have a car payment anymore, they have a bonus.