What happens when you default on your loan and the insurance company pays out on your loan?

Cars & Vehicles
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In most places the money goes to the BANK! Their name is on the title of the vehicle until you make all your payments and they sign a "release of lein".

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What happens when you default on a car loan?

When a consumer defaults on a car loan their credit becomes negatively affected. Not only that, the previously purchased vehicle will become subject to repossession if the payment is not received.

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What happens when you default on a title loan?

If you start to miss your monthly payments and continue to miss them without any communication to your lender, the delinquency can result in car title loan default.A car title loan default is the failure to repay a loan according to the terms agreed upon in your contract.

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Can your loan be in default if you are making your payments on time but have failed to insure the vehicle or provide information to the loan company?

Yes. Making payments on time is only one of several things you agreed to do when you signed the loan papers.

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What happens if you default on a car loan?

Defaulting on any loan causes many negative financial repercussions for a borrower.Defaulting on a car loan will have specific, unique effects on your assets.Missing a car payment will result in an immediate drop in your credit score.If you miss more than one payment, your FICO scores begin to dr...

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What happens if you stop paying on your loan?

This depends entirely on why you stop paying. I am assuming that your vehicle is security for a promise to pay...either a loan or a retail sales finance contract. But let's say you purchased credit disability insurance on the debt and you got sick and cant work, and therefore can't pay. In this c...

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What happens if you never pay your student loan?

If you ignore your student loans, your balance will keep growing as interest accrues, plus you'll likely owe hefty additional fees if your debt gets moved into collections.If you default on federal student loans, the government can take your tax refund or up to 15% of your wages.

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What happens when you don't pay back a title loan?

If you can't pay off the loan in the typical 30‑day period, the lender may offer to “roll over” the loan into a new loan.But the roll over process always adds fees and interest to the amount you originally borrowed.If you don't pay what you owe, the lender may decide to repossess your vehicle.

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Can the government take your car if you default on your student loan?

No, the government does not reposses property for defaulted student loans.A great program that started this past July 1 is the income based repayment plan. If you consolidate your loans, you can opt in for this repayment program. Your payment can be as low as $0 a month, based on income and # of ...

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How do insurance companies pay out claims?

Claims for homeowners and car insurance require the same four basic steps before your insurance company will pay out: Step 1: Make the right phone calls. Step 2: Fill out the required forms. Step 3: Get damages assessed. Step 4: Cover your deductible.

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Do insurance companies pay out for whiplash?

Whoever was responsible for the whiplash you have suffered, you may be entitled to compensation from an insurance company if the injury is particularly serious and long-lasting.The insurance company for the party responsible for the accident may offer an out-of-court settlement which you are free...

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What happens when you attempt to pay off a car and the company returns your money because it was short?

You pay the correct amount.

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What happens when an insurance company totals your car?

If the insurance company totals your car, it will pay you the car's actual cash value, minus your deductible, and your car is then sent to a salvage yard to be auctioned off to the highest bidder and usually chopped up for parts.The insurance company keeps whatever money it got for the car in sal...

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What can happen if you don't pay a title loan and you still have the car?

The vehicle can be repossessed.

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How do you know when you have a default on a car loan?

The first time you miss a payment... you made a committment... does your word mean anything?

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What happens when you change car insurance companies?

Switching insurance companies won't have any impact on an open insurance claim you have.There's no penalty to doing so, and your current insurer will still pay out the claim as it normally would, even if you stop coverage from them.

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Will the insurance company pay for your blown up car?

Depends on the circumstances surrounding the incident.

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What happens to your car loan when you file bankruptcy?

In general, when you stop paying your car loan, the lender will seize your car and sell it to pay off your loan.If the money from the sale is not enough to cover your remaining loan balance, the lender can sue you to collect the remaining amount (called the deficiency balance).

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What happens if you don't pay back a title loan?

If you can't pay off the loan in the typical 30‑day period, the lender may offer to “roll over” the loan into a new loan.But the roll over process always adds fees and interest to the amount you originally borrowed.If you don't pay what you owe, the lender may decide to repossess your vehicle.

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What happens to your insurance when you total your car?

Totaled Cars: What Happens When Your Insurance Company Declares Your Car a Total Loss.If the cost to repair your car is close to its value, the insurance company may deem it to be a total loss.If your car is totaled in an accident, insurance pays you for the car's estimated value.

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What happens when you stop paying your car lease?

If you cannot afford to make payments anymore and stop sending your lender money, then they will eventually repossess the vehicle.Failing to pay off your car loan will do major damage to your credit.You can always avoid repossession fees by surrendering the car to lender before it gets repossessed.

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Your friend sold you his car take over paymentsHe took the car off his insurance you insured the car and then totaled it but you are not on the title Will your insurance company pay for it?

As long as you have the title that he signed off of it and you signed on and you have insurance on the vehicle it will be covered.

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What happens when you back out and hit your other vehicle parked in the driveway?

You can pay for it yourself or file a claim with your insurance company and they will take care of it. Do realize that your premiums will go up. So do the math, if the damage is more than your deductable plus the difference in what you will pay if your insurance goes up (for 3 years worth or howe...

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Do insurance companies pay you or the Body Shop?

The insurer can't dictate to whom it pays the money because it doesn't have a policy contract with you.In most third-party claims, insurers pay the claimant directly.If your vehicle has been totaled in a third-party claim situation, the at-fault party's insurance company will likely pay only you.

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Do insurance companies pay for pain and suffering?

Automobile liability policies generally provide coverage for pain and suffering claims.Typically referred to as "bodily injury liability," this coverage applies to pain and suffering damages, as well as claims for medical bills and lost wages.

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What happens if you stop paying on your timeshare?

If you stop paying on your timeshare loan, you face foreclosure.Foreclosure is the process whereby the lender files to take possession of the property and sell it at auction to recover the money you owe.The judge may issue a deficiency judgment for the remaining balance due after the auction.

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Do insurance companies automatically pay pain and suffering?

Payble by Insurance Automobile liability policies generally provide coverage for pain and suffering claims.Typically referred to as "bodily injury liability," this coverage applies to pain and suffering damages, as well as claims for medical bills and lost wages.

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What happens when an insurance company denies a claim?

When your insurance claim is denied, the insurance company has to give you a reason for the denial.Common reasons for denial of claims include: Failure to Notify — Policyholders have an obligation to notify insurance companies of accidents in a reasonable amount of time after the accident happened.

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How much do insurance companies pay for pain and suffering?

Insurance companies typically multiply the amount of medical bills by a number between one and five to calculate “pain and suffering.” The more severe and permanent the injury, the higher the multiplier.You, or your attorney, will need to use your best judgment in estimating your pain and suffering.

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My car loan is in default due to nonpayment how do I get it out of default and keep my car?

pay your bill Paid 3 months back current payment due and bank has issued repo Who can help until can get caught up

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What if your loan company wants to repo your car and you no longer have it?

Then you're still liable for the money you owe the lienholder.

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What happens when your car loan is denied?

A bank can deny a car loan for many reasons, with poor credit being the most common.Although the dealer preapproved you for a car loan based on information in your credit application, the lender can still deny the loan after it receives the sales contract and takes a closer look at your financial...

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How can you get your car back if the finance company wants you to make the loan current and pay to get the car out but you can't afford to?

Gee, Hery, I dont see any way for you to get it back.

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What happens when your ECM goes out?

If the ECM has any issues, it may throw off the timing and fuel settings of the engine, which can negatively affect performance.A faulty ECM may cause the vehicle to experience a reduction in fuel efficiency, power, acceleration.

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What happens when your allignment goes out?

Your tires will wear and possibly your vehicle could shimmy

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What happens when your alternator goes out?

Car stalls or has difficulty starting.When the alternator is failing, there might not be enough power in the spark plugs to keep the engine alive, which can cause it to stall for no reason while running, or to have trouble starting.Ignore this symptom, and your car eventually won't start at all.

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What happens when your differential goes out?

If rear differential noise occurs while accelerating the car only at a certain speed, it is likely because the gears have become worn due to overloading and lubrication failure.Regular clunking every few feet can also be an indicator of a broken pinion gear and/or chipped and damaged ring gear.

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What is the worse that can happen by not telling your insurance company that the insured vehicle is salvage?

They will probably run a "carfax" or similar title search on the vehicle prior to insuring it. If they don't ask you the question, "Is this a salvage vehicle?" you don't have to volunteer the information.If something were to happen to the vehicle and it became a total loss you could face fraud ch...

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If you got full coverage insurance and you hit a tree will your insurance pay for the damage?

Yes, minus your deductible.

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What happens to your car when the alternator goes out?

It'll run solely off the battery for a little while until the battery becomes too depleted. The check engine light will most likely come on, as well. This is, of course, provided the alternator doesn't seize when it goes out. If it does seize, your vehicle will either stall out, or it'll cause th...

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How long does it take for an insurance company to pay out a claim?

Most Auto Insurance Companies Set a 30 Day Goal Whether you're in a fender bender or you've totaled your vehicle, the insurance company wants to complete your claim within 30 days, maximum.That means your claim is settled, paid, and completed.Of course, the real length of time varies widely betw...

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You were in an accident and the other party was at fault Their insurance company is paying to fix your vehicle but their insurance co wants to give you next to nothing for your med pain and suffering?

See a Lawyer who specializes in personal injury and auto claims. Be wary if the lawyer wants more than 25% of any recovery as a fee. Most states have a cap on what percentage a lawyer may be paid in the event any monies are recovered from the other insurer.NO matter what, DO NOT sign any release ...

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Do you have a right to pay off your loan in full when car is repoed?

Up to the lienholder but once you default they are entitled to the security and there are expenses involved as well to resell depending on who, amount, value of car and how far along they are in that process will decide it for them. Obviously they will cut their losses as much as they can.

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Can you really keep paying principle payments towards your car loan and reduce interest?

By paying down the principle you decrease the amount of interest you pay on the loan. This will save you considerable on interest charges over the life of the note. If you simply pay an additional amount on the loan each month, over and above the required payment amount, you will also pay the loa...

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What happens when your car gets impounded and you don't have the money to get it out?

It varies place to place, but it is stored for a time, usually 30 days and them sold. There is a towing fee and a daily storage fee that can really add up quickly. If you want the car, you need to get it out somehow ASAP.

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If you have out of country plates and you get a parking ticket what happens if you do not pay?

Nonpayment of a parking ticket can result in a warrant being issued forth the registered owner of the vehicle. A notice of the ticket and nonpayment of the ticket will be mailed to the owners address.

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Are you in default of a car loan if the vehicle is not registered?

Registration of the vehicle has nothing to do with the loan or financing of the vehicle. The only was to "default" is to not make the payments.

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Your finance car was stolen does your insurance claim go to your finance company to pay off the cars debt?

The monies from the insurance company will go towards the car payoff. Now, the insurance company is entitled to pay off the worth of the car. If the car is worth less than you owe, you may have to pay back the rest. For Example, say you owe $20,000.00 on a certain vehicle. The Blue Book(www.kelle...

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What happens when your return a car to finance company?

It is treated as a voluntary reposession and it still hurts your credit. They will auction the car and you will pay the difference of your loan and the amount they get from auction.

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What happens if you don't reaffirm your car loan?

The bankruptcy cancels your legal liability to pay on the car.Failing to complete the reaffirmation will allow the lender to repossess the vehicle after your bankruptcy is completed.If that does happen, you will not be liable for the remaining balance because you did not reaffirm the loan.

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What happens if you don t pay back a car title loan?

If you can't pay off the loan in the typical 30‑day period, the lender may offer to “roll over” the loan into a new loan.But the roll over process always adds fees and interest to the amount you originally borrowed.If you don't pay what you owe, the lender may decide to repossess your vehicle.

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What happens when someone hits your car and has no insurance?

If you didn't cause the accident to take place (meaning you are not ''at-fault'') and an insured driver hit you, you can still collect money from the at-fault driver's insurance company.If an uninsured driver hit you, on the other hand, you'll most likely have to sue the driver for compensation.

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When your car is totaled by insurance what happens?

They're especially bad when your car is undriveable.When a car's damages are beyond repair, it's considered a total loss.That means the cost to repair the vehicle is close to or higher than its value.If your car is totaled in an accident, insurance pays you for the car's estimated value.

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Owner of car says car is insured and you are covered-you crash-it turns out the car is not insured-your insurance covers other party but not the car you were driving. Who pays for damages to car?

The person that lied to you about the insurance would have to pay for it. you could even take them to court. If they lied about the insurance on your car, they could be arrested under a small amount.

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How long do you have to pay on a car loan to help your credit?

Until your car loan is paid in full. Usually around 36 months, give or take.

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What happens when you lose an auto civil-jury trial and do not pay?

I believe a person with a court judgment against you can seek civil remedies, such as asking the court to place a lien on your possessions like your house, car, motorcycle. The judge could order the bank to freeze your account. The bottom line is you were ordered to pay. Ask your attorney to cont...

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If you are in an accident and at fault will the insurance company repair your car?

It depends on what company you have insurance with, where you live, and how much coverage you have been paying for.I have The Hartford Insurance. I was in one, I was at fault and they paid for repairs on the other guy's car and my car.It all depends on how much coverage you pay for in your premiu...

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What happens to your car when you park with out the emergency brake engaged?

you dont need to. just put in park

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What happens if you don't pay your parking tickets?

you will probably get free room and board for a while from the authorities enjoy

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What happens if you don't pay your tags?

If you don't renew your vehicle registration, you won't get that little sticker you put on your plate, which means your registration will be expired.If you are driving the car, the police can pull you over simply for an expired registration.You can get a ticket.

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What happens if your car is repossessed and you are out of the country?

The same thing happens as if you lived across the street from the lender. They notify you by mail what is going to happen(court,auction,ect) and if you dont respond they proceed. No biggie.Not to my knowledge. Search in your browser for "vise + revoke".

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What happens when you drain out the transmission fluid in a car and drive it?

what can happen to the transmission?Also is it possible to put fluid back in to save the transmission?You won't get far and you will probably do some damage to the transmission in the process.

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Can you get money back on your life insurance policy if the company cancelled the policy after 15 years of paying?

Why did the company cancel? If you paid your premium, they can't. Was it a whole life, permanent, Universal Life or term policy. If term, there is no cash value.

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When employee uses own car and company pays gas what is the mileage reimbursement?

When an employee uses own car and company pays for the gas what is the mileage reimbursement?

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What happens if you leave your car with the towing company in NV and you don't want the car back?

After a period of time, it becomes an abandoned vehicle and can be claimed by another person/company.

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When your car is repoed and you pay the loan off how long do they have to give the car back?

they usually do not give it back. once they take it, it is theirs.

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What are some companies who offer pay as you drive car insurance?

Many companies offer pay as you drive car insurance, including Progressive and Esurance. Pay as you go drive insurance provides rates based on the type of vehicle used, measured against distance, time, place and behavior.

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What happens if you leave your car with the towing company in CA and you dont want the car back?

Most reputable towing companies will sell or "dispose" of your vehicle through the lien sale process. If any monies are collected from the sale that amount will be deducted from the total amount due on the lien sale date. Your information will then be forwarded to a collections agency and attache...

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Is there a set mileage rate a company should pay when you use your vehicle?

The IRS sets a rate that is used for determining the deductibility of business use for your personal vehicle. Many companies will use that rate when reimbursing their employees for usage of their own car. Currently, for 2007, that rate is 48.5 cents. You can learn more at http://www.irs.gov/newsr...

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If you have not paid on your car for several years and lost the paper work how do you find out who you owe and where to pay?

Request your credit report and the information should be on there.

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When you pay off a car loan should the lien holder send you CAR KEY?

The lein holder does not have the key to your car. They will have a title that you will be sent.

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What happens if you don't pay an insurance claim against you?

If you cause an accident without insurance, you'll have to pay for all the damage to your vehicle out of your pocket.You could also be sued by other people for damage and injuries you caused them.Even if you buy car insurance the next day, that policy would apply only to accidents that happen aft...

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What happens when your automatic transmission goes out?

When your transmission goes out, your car's handling will be affected.You may experience vibrations, slippage (engine revs but vehicle does not accelerate as it should) or different shift patterns in your vehicle.The gear shift on your car will stop working when the transmission dies.

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What happens when your fan clutch goes out?

A stuck fan clutch will cause excessive, unnecessary drag on the engine, which can cause a drop in power, acceleration, and fuel efficiency, sometimes to a quite noticeable degree.As the fan clutch is one of the main cooling system components, it is very important to the proper operation of the e...

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What happens when your fuel pump goes out?

What Happens When A Fuel Pump Goes Out? A faulty fuel pump will cause major performance and drive-ability issues with your vehicle.If your fuel to air ratio is off and the cylinders aren't getting the fuel, then the pistons aren't firing and your engine is struggling to move the vehicle forward.

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If car is repossessed do you have to pay the balance on the loan and if so how much?

Once they repo the car, the lender will sell the car for whatever it will bring. You will then be responsible for the difference in what the car brings and the balance on the note. You may even be responsible for repossession fees, and your credit will be ruined for 7 years.

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What happens when your car runs out of freon?

This worst-case scenario can happen while the engine runs and sometimes be accompanied by a loud rattling noise, clunk or metal-to-metal screech.A slow leak, which eventually leads to total refrigerant loss, will begin by causing unusual compressor noises that worsen as the refrigerant escapes.

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What happens when your voltage regulator goes out?

Engine stalling, sputtering and intermittent acceleration will occur when the vehicle's voltage regulator is unable to handle the power put out by the vehicle's stock (and faster-moving) alternator.This causes the regulator to burn out quickly because it was overworked.

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What happens when your car stalls out in water?

If water gets into the air intake system and enters the fuel system, it can alter the air/fuel ratio and lessen engine power.This situation is also known as hydrolock and can cause the engine to stall.If the water in the combustion chamber is in small amounts, it is often eliminated by engine heat.

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What happens when your alternator goes out while driving?

If the problem is a bad alternator, your car will slowly lose power.You'll be driving down the road, your lights will dim, and you'll lose power and die.Once the alternator stops working, so do all of the electrical systems required to keep a car going.Other problems can also cause a car to not s...

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What happens when your heater core goes out?

The most common sign of a heater core problem is when the inside of you vehicle suddenly fogs up, covering every window with condensation.This means that the mechanism has sprung a leak, spewing hot coolant vapor into the cabin of your car, which often happens as you're driving and the engine has...

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What happens when your clutch goes out while driving?

When they fail, it can feel like you are trying to shift without the clutch.Sometimes gear grinding is simply caused when the driver forgets to engage the clutch.Of course, it can also be a sign that your clutch is indeed wearing out.Driving in the city or excessively using the car can cause it t...

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What happens when a rack and pinion goes out?

The steering system utilized in many modern cars is a rack and pinion steering system.The steering rack is essentially the heart of the steering system.When it wears out or breaks entirely the ability to steer your vehicle is compromised.If this happens while you are driving, it can be extremely ...

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When you turn on your ac the fuse blows out?

Compressor is more than likely locked up or you have a short in the wiring.

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What happens when your timing chain goes out?

A broken timing chain in a noninterference engine will not cause engine damage, but the vehicle will still immediately shut off and not run.A timing chain break in an interference engine will cause the vehicle to shut off and also damage the pistons and valves, leading to expensive engine repairs.

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What happens when your fuel pump goes out while driving?

What Happens When A Fuel Pump Goes Out? A faulty fuel pump will cause major performance and drive-ability issues with your vehicle.If your fuel to air ratio is off and the cylinders aren't getting the fuel, then the pistons aren't firing and your engine is struggling to move the vehicle forward.

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What happens when your transmission speed sensor goes out?

A faulty vehicle speed sensor can cause an array of problems.However, here is a list of the most common symptoms associated with a bad engine speed sensor: Transmission revs higher before it changes gears.The car's transmission engages into overdrive late and sometimes will never go into that top...

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What happens when your slave cylinder goes out?

Loose Pedal The way a clutch pedal feels when pressed will often indicate if a slave cylinder is faulty.The clutch might feel loose or soft and may not shift into action, even when the pedal is pressed completely to the floor.This occurs when a seal inside the slave cylinder starts leaking, allo...

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I was wonder when you get gas in a semi truck does the company you work for pay for the gas or do you have to pay for it out of your own pocket?

You don't put gas in a semi truck - they use diesel. If it's a company owned truck, the company pays for the fuel. Lease/operators and owner/operators who lease on with a company to run under their operating authority pay for their own fuel.

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How do you find out information about when your loan was paid off?

If you were unable to monitor your payments based on the term of your loan and number of payments to be made, the best way to get information is to contact your bank account officer who can verify these for you. If you were required to issue post dated checks or that payments be debited from your...

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What happens if your insurance lapses and you have an accident?

In the world of car insurance, when you don't pay your car insurance bill, your policy lapses.All this means is that you are no longer insured, so if you get into an accident you are completely on your own.You will have to pay to repair or replace your own car.

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What happens when you get points on your license?

Different violations result in different point amounts being added to your driving record.Accumulating too many points can result in an automatic license suspension from the Arizona Department of Transportation's Motor Vehicles Division (MVD).

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When you are paying on a car and it needs to be repaired but you can not afford the machanic bill what happens?

Depends. If the work is done already, then the mechanic can put a mechanic's lien on it. If not paid in a specified time, they can sell the car off. You're still liable for payments to the lienholder, though.

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Can you pay your renewal car insurance online?

It depends on what company you are with. Most company's allow you to renew your insurance online.And can pay it by credit card.

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What is a fair price to pay the insurance company to keep a totaled vehicle?

I feel the price depends upon the year, make, model of the vehicle totalled as well as how badly damaged is the vehicle in question and do you have a vehicle on hand to possibly transfere the salvageable parts from the totalled vehicle to the replacement vehicle? Also did you get enough money fro...

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What happens if you don't pay maintenance fees on timeshare?

Failure to pay these fees results in collection efforts by the management company.When you purchased your timeshare, your contract outlined the amount of the maintenance fees and their due date.You may incur interest, collection efforts and even foreclosure if you do not pay on time.

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Are you insured if your mot has run out and your car is stolen?

if you don't have an up to date MOT then your insurance is null and void.if your car is stolen then you are only covered if you have fully comp insurance!

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What happens when your car jumps when you on the gas?

When you on the gas jump, oh much kanga hoppitty boing goes, oh yes.The thrudge stick thing with a couple of hooks make much going to and fro.Always remember, it best to clear the loadsprung durch technic and alway learn to cross pollinate the flange muffler.I hope that clears things up.

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What happens when the airbag comes out?

A malfunctioning crash sensor can cause very serious injuries, even death.But any deployment of an airbag can cause injury.For example: The speed at which the airbag deploys can cause abrasions or burns.

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Does insurance pay for your car if it burns you?

Kind of an odd question. If you get burned from something on your car, that isn't caused by a mechanical fire , I doubt if your insurance company would pay you anything. Their liability is for accidents and damages done to other cars in traffic accidents. You need to provide more info for a bette...

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Do you have to still pay the loan if they repo your car?

Theoretically yes (though what the car is resold for is applied to the balance of the debt as a credit). However, lenders know their chances of getting that money are slim to none, because if you'd had the money you would have been making the car payments in the first place. So they tend to try t...

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