Legal Question in Consumer Law in Georgia

My car loan is paid off but lien holder is still on the title because I have a LOC with them with a cross collateral clause. The lien holder is not on my insurance policy. If my car is a total loss due to an accident will the insurance company be required to pay lien holder though they are not the policy holder and are not listed in anyway on the policy .


Asked on 1/28/15, 5:03 pm

1 Answer from Attorneys
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

Yiou have badly screwed up. Your car is NOT paid off. That is what a cross-collateral clause means. That is why it is VERY foolish to do car loans with credit unions unless you have NO other loans with them. Since your car is NOT paid off, they can repo your car and accelerate the balance because of your violation of the insurance clause and they can even forceplace coverage that ONLY covers them and charge you for it. If your car is a total loss in an accident they will still get the insurance money and you'll probably get sued.

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Answered on 1/28/15, 5:34 pm


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