Does insurance claim for a mortgaged car require the original owner?
2 Answers
No, in the event of a traffic accident, the owner does not need to be present. However, it is recommended to complete the transfer procedures as soon as possible. Here is relevant information: Mortgaged car: A mortgaged car refers to a vehicle that consumers can obtain by only providing the certificate and then completing the mortgage procedures at the vehicle management office without surrendering the car. At this point, the vehicle becomes a mortgaged car. Mortgage means that the debtor or a third party does not transfer possession of the property (i.e., the motor vehicle) but uses the property as collateral for the debt. If the debtor fails to fulfill the debt, the creditor has the right to prioritize repayment by either converting the property into money or auctioning or selling the property according to legal provisions. Materials required for applying for a car loan with a car mortgage: Stable employment, the applicant must own the mortgaged vehicle locally; proof of long-term residence and work in the city where the business is conducted, as well as proof of occupation and economic income; vehicle registration certificate, driving license, additional purchase tax certificate, and car purchase invoice.
I encountered a similar situation before. My buddy's car was purchased with a loan, and there was a bank loan involved. Later, it got into an accident and needed an insurance claim. Generally speaking, the original owner doesn't need to be involved in the claim process unless they are still the policyholder or a relevant party on the insurance policy. The insurance company mainly looks at the current policy information and the registered owner of the vehicle. At that time, my buddy's car was under a lien, and the lending institution was listed as the first payee on the policy. The claim payment was first sent to the bank to pay off the remaining loan balance, and only then was the remaining amount given to the current owner. The entire process didn't involve the original owner because the insurance is based on the current contract. My advice in such cases is to first check the policy details and contact the insurance company to confirm the lending institution's information—this can help avoid complications. Usually, the insurance company will guide you step by step through the process. Don't worry about the original owner; as long as you, as the current owner, cooperate, things should go smoothly.
