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Is it reasonable and fair to ask the party at fault to pay my lien in full if my vehicle is totaled?

The Woodlands, TX |
Filed under: Lawsuits and disputes

I was rear ended, my car is totaled according to the insurance adjuster and the vehicle, according to some research I've done, is worth only a little over half of what is still owed on my lien.

Attorney Answers 4


  1. First, if you were injured seek medical treatment and talk to a lawyer about handling your claim. Do this before you try to deal with the other driver's insurer.

    To answer your question, they are obligated only to pay what you could have sold the car for, not what you owe on it. The money from the insurer will go directly to the lien holder and you will still owe the rest. However, you may have additional insurance that will cover the rest. Check out what you are paying the lien holder and see if part of it is to pay for extra insurance on the loan. It may or may not be there and it may or may not cover this situation, but check.

    This is not legal advice. You should always discuss the specifics of your issue in person with an attorney. Be aware that there are time limits on all claims that depend on the kind of claim, so do not delay in seeking an attorney.


  2. In Texas you get the fair market value of the car immediately before the wreck occurred. Sorry but the amount you owe rarely matches its value.

    All information provided here is for educational use only and does not constitute legal advice nor establish any attorney-client relationship. Paul H. Cannon is licensed to practice law in the State of Texas. Laws vary from State-to-State. For legal advice and opinions, please retain the services of a lawyer licensed to practice in the appropriate state or jurisdiction.


  3. Generally, you are entitled only to the cost of repair, or the fair market (book) value of the car if it was totalled, Any loans you took are not recoverable from the adverse party or his/her insurer.


  4. Fair market value. If you were injured, retain one of the above personal injury lawyers.

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