What happens if you're in a car accident and your car is a total loss, but you're still paying it off?

Lemar J

Very simple.

The insurance company is going to pay the wholesale value of your vehicle. Do your research at www.edmunds.com to determine where that value should fall.

If your car is worth more than you owe, you get to pocket what's leftover.

If you owe more than the car is worth, you've got to pay the finance company the difference.

You can do this in one of two ways: Pay the difference out of pocket before you finance a new car, or see if the finance company will allow you to roll the difference into you new loan. (kinda like trading in a vehicle you still owe money on)

I've lost a vehicle due to fire and had a vehicle stolen.

Looking at the stolen vehicle first, it was worth about $22k and I still owed $38K. Fortunately I had gap insurance that paid the difference, or I still would have owed $16K + the $500 deduct.

The truck that caught on fire was worth $6500 at the time of loss and I only owed $1500. I used the difference to pay off another vehicle and still had a decent amount for a down payment on the replacement vehicle.

sirjuke

I am pretty sure what happens is that give you the blue book value of your car. This is where that gap insurance comes in handy on a newly bought car that is used. Your car depreciates in value due to many different factors and the insurance will most likely give you what you would price you car for at www.kbb.com. You then take that money and send it to your credit union (whatever the remainder of your loan is) and you keep the rest considerign there is a rest to keep.

crazy_ol_hippie_radical

the ins co pays off the loan and you get the balance of what cars worth

tattie_herbert

What cover did you have??
Third party, you will pay!
Fully comprehensive, the insurance will pay.

cope_acetic

Talk to your insurance agent...they will pay for your loan & a New car....IF you were paying for that coverage.

LARRY J7

There is major gaps in info here to determine the outcome here--

If you are still "paying this vehicle off" you most certainly would have or should have full coverage insurance--because not only do most "lenders" require this-- in most states it is the law !!

Now, the fault angle-- if you are declared at fault here-- and there was other damage to other property or persons YOUR insurance will have to pay THAT off as well (to the amount that you are covered for)----If there was someone else at fault here---Your insurance company will go after THEIR insurance to pay all the incurred losses---- But, with full coverage you should have no worries about the vehicle being "paid off" by someone !!!

If--however--you are declared the "at fault" driver here--- after everything is said and done--- all debts paid and covered--- you can probably look at having SIGNIFICANT increases in your future coverage for some time to come !!!

dodge man

the insurance company will pay it off and you,ll receive the difference of what its worth at present time,that's how they usually do this,so you wont be paying double on it,but they should pay you what the difference is in it,good luck with this,i hope this help,s.

Kiffin # 1

Your collison will give the finance company the book value of the car; if the book value is less than what you owe, you will be responsible to make up the difference. If it is more than what you owe, the finance company will refund the difference.

At any rate, you will have to apply for another loan to purchase another car, but you shouldn't be paying two car notes simultaneously.

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