What happens if someone totalled my car, and I owed more than it was worth?

Keltic Knot

The young man's insurance should take care of all of it. And, when you get in touch with the insurance company, they should be offering you a fair piece of change to settle the case, just indicate you are going to sue for damages.

Let the finance company know the situation and the name of your and the teen's insurance company, and let them hassle it out. Let your insurance company do the work for you -- it is what they are supposed to do.

My brother had a similar problem, and the minute he mentioned suing, the insurance company came to the table with full restitution and another $15,000 for pain and suffering. Worked out nicely for him.

If you were rear-ended at 55 mph, don't be surprised if you have any delayed whiplash or other injuries -- even if it is just soreness. Do not be too quick to think, "oh, I'm alright." And certainly don't tell the insurance company you are "alright" until you are sure you are.

whatsupchuck26

Did you have something called GAP insurance included when you financed the vehicle? That would pay the difference between the insurance settlement amount and the loan value.

CwboyBill

The bank is going to expect to be paid no matter what happens to you or your car. If you owe more than it's worth, that's all on you. Just make arrangements with your leinholder to pay off the balance.
P.S: to the idiot that's telling you to 'lie' about your injuries and 'threaten' to sue, you have no clue what you're talking about. Insurance companies handle morons like this every day and know how to deal with them. They also have an army of their own lawyers and investigators to boot -- so my advice is to be honest and don't be dumb enough to cop an attitude.

itscarling

if you purchaced GAP insurance it should be taken care of with like a replacement or something like that i cant remember how it works but i have it.

Scott H

You still owe the payments. The insurance company only pays the actual cash value of your car, no matter how much you owe. You pay the difference, or if you had GAP insurance, that will pay the balance.

fade_this_rally

You have to continue to pay for the remaining balance until there are no more obligations.

justin k

his insurance should cover the cost of the car. if you still owe you should also be covered for that too. its a win win unless both of you have crappy insurance, if you had the insurance required by the loan company you will be fine

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