Got hit by someone in a rental car — who actually pays when there's a lien on my vehicle?

Oh man, I went through almost this exact situation about a year and a half ago. My car had a loan on it when someone totaled it. What happened in my case was the insurance settlement check was made out to BOTH me and my lien holder — so we both had to sign it. The lien holder got paid off first and I got whatever was left over, if anything. Definitely call your credit union and give them a heads up now so they're not blindsided when a check shows up.

Watch out when you're dealing with the rental company's insurance. They are going to try to lowball the value of your car, especially if it's a few years old. They'll pull some third-party valuation tool and act like that number is gospel. It's not. You can and should push back with comparable listings in your area. Don't just accept the first offer they throw at you.

So here's how this typically works from the inside: when there's a lien on a totaled vehicle, the settlement check almost always gets issued jointly to the owner and the lienholder. The lien gets satisfied first — that's just standard procedure. If the payout is less than what you owe, that gap is called being 'underwater' or having negative equity, and unfortunately that's on you unless you had GAP insurance on your loan. Check your original loan documents — some credit unions bundle that in automatically.

A couple of things worth knowing: the rental driver's liability coverage (either through the rental company or his own personal auto policy — renters often have both) should cover your property damage and your injuries separately. Property damage and bodily injury are two different claims. Don't let them bundle everything together or rush you into a single settlement before you know the full extent of your injuries. That neck stiffness you mentioned needs to be properly documented — go to that urgent care appointment and tell them everything.

Not legal advice, but — when liability is clearly established by a police report and the at-fault driver's own admission, you're generally in a stronger position than most people realize. The property damage side and the personal injury side of your claim are handled separately, and you don't have to settle one to pursue the other. Given that you have a lienholder, a loan balance, AND a potential injury claim all tangled together here, a free consultation with a PI attorney could at least help you understand your options before you sign anything.

Three things: 1) Call your credit union today and tell them what happened. 2) Don't sign any release from the rental company's insurer until you know what your medical situation actually is. 3) If you didn't already, photograph every inch of your car before it gets moved or crushed. You'll thank yourself later.

This sounds so overwhelming, I'm sorry you're dealing with all of this on top of just being shaken up from the crash itself. Please take care of yourself first — get checked out medically and don't feel pressured to rush through the financial stuff. You have time to figure it out.

Do you know for sure whether the rental driver had his own personal auto insurance in addition to whatever the rental company offers? That actually changes things quite a bit in terms of which policy pays and how much coverage is available. Also did you have uninsured/underinsured coverage on your own policy? Worth pulling that out and reading it.