You will need to read your GAP insurance information. Like car insurance each plan is different. Some GAP insurance plans state they will pay 100% of the “resale” value. Others state 125% (meaning the current resale value of your car plus 25% above that). Others state 100% of “trade-in” value.
Bottom line – read the insurance plan document you got from the company, or visit the car dealership you bought the car from and pick up a pamphlet.
Good luck to you!
Can you stop paying car insurance on a car with gargled motor and proceed to pay off loan to avoid voluntary repossession in Fresh York?
If your loan agreement requires you to carry ins (most do) and you drop it, then you will be in default of the contract. You better make SURE the payments get to the lender PROMPTLY so they dont take a 2nd look at your record when the ins. co. tells them you dropped the ins.
Can a co-signer pay the balance of the loan off to save credit history after a repo and then sue the holder of the car for half the loan?
Anyone can sue anyone for almost anything. Winning and collecting any judgment is another thing.
If you pay off the balance on your repossessed car to get it back do you have to pay the balance owed with interest based on the original Five year loan?
Unless you get the lender to agree to an suggest, you will pay the balance due for payoff(repo fees, late charges,ect. have likely devoured any reduction in interest you would have seen for early payoff)
If you volunteer a repossession do you have to pay off your car loan?
YES, you have to pay off the loan. You have agreed to pay the lender X number of dollars for X number of months in comeback for letting you use X number of dollars to buy a car. Once the car is sold, the sale price is deducted from the balance due and you still owe that amount.
When they sell a car at auction and do not get the amount you owe left on your loan can they make you pay the balance?
Yes. They can want you to pay and they can garnishee your wages,link leins to your other property, but NO, they can’t make youpay if you dont have a job or assets.
What do you do if the insurance for a totaled car does not pay off the car loan?
I faced the same thing about a year ago. The insurance company did not want to give me what was needed. I got on-line and found many cars that were just like mine and demonstrated them that my car was worth more than they were wanting to give me. They still did not want to give me what the car was worth. So I went to petite claims court and filed suit on the driver of the other car. The person’s insurance has to represent them. Also go and look at the comps that the insurance company are using for your car to see if you can substitute the car for what they want to give you. ReactionUltimately it is your responsibility that you either made low payments, took out a very long loan, or picked a car with high depreciation. The insurance company is not liable for the inflated amount you owe–only what the car is worth. ResponseThe insurance company will only give you the value of the vehicle, as per the “Kelly Blue Book”. They will also send an appraiser out to see what the condition of the car was, as in mileage, any previous harm. If the accident was another driver’s fault, you have to sue him and/or his insurance company for the remaining balance.Whatever you borrowed to obtain the vehicle wil always be more than the car is worth. You have already lost money on it as soon as you drove it off the car lot. But do your research. Go online for “Kelly Blue Book”, and get the estimate of the car’s value. If it is more, then dispute it with the insurance company. Print the page out. ResponseWhen you bought the car fresh or used from the dealer you had the option to purchase something called GAP INSURANCE from them (the Dealer, not the insurance company) for your exact situation. If you did not have enough equity in your car for the insurance pay off to cover it AND did not have gap insurance. basically you are screwed and responsible for the rest of the loan amount car or no car. Some people believe Gap insurance is a rip off so they do not suggest it to you and some just don’t know what it is. They do not need to be selling cars. Not fair but the way of life. Father is an insurance sales man. I also had a dame hit me I had GAP insurance and she did not. She still had to pay off the balance on the loan even however she did not have the car. The courts won’t do much because you had the option to purchase gap insurance and you did not, it does not matter that you did not know.
What can you do if your car is stolen and you still have a loan on the car but your insurance does not cover theft and they recover your car totaled?
Reaction .
YOU pay off the loan like you agreed to in the contract. You likely agreed to have ins. that covered theft also..
Reaction .
You should have had utter coverage on a car with a loan on it. Sorry, you have to pay the loan off and now you own a totaled car! Comprehensive coverage isn’t that expensive and would have covered theft.
YOU pay off the loan like you agreed to in the contract. You likely agreed to have ins. that covered theft also..
Reaction .
You should have had utter coverage on a car with a loan on it. Sorry, you have to pay the loan off and now you own a totaled car! Comprehensive coverage isn’t that expensive and would have covered theft.
If the finance company thought your insurance was cancelled and put an add on policy to your loan and the car was totaled while both policies were in effect will both policies pay for the loss?
No, the finance company would simply refund any monies they charged you for coerced placed insurance and your primary insurance company would be responsible for footing the bill.
If you accidentally burn your car up due to cigarette falling on floor will your insurance and GAP cover your entire loan?
Yes.This is how it works…..Your insurance will cover up to the retail value of the car which may be a entire lot less than the loan amount left.The difference inbetween the retail value and the loan is what the gap covers, so you’ll be set.
Will paying off a car loan increase your credit score?
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No, most likely not..
Credit scores are calculated based on ALL the information demonstrating in a consumer’s credit file at the time they are requested. So one petite lump of information needs to be evaluated in relation to the entire. However, there is nothing about paying off an installment loan, whether early or on time, that would cause your scores to rise. The same is not true regarding revolving accounts (like credit cards)..
No, most likely not..
Credit scores are calculated based on ALL the information demonstrating in a consumer’s credit file at the time they are requested. So one petite lump of information needs to be evaluated in relation to the entire. However, there is nothing about paying off an installment loan, whether early or on time, that would cause your scores to rise. The same is not true regarding revolving accounts (like credit cards)..
Do you still have to pay off the loan once your car is repossessed?
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In almost all cases, YES.At the very least you will pay the difference in what the car sells for and the balance on the note.
In almost all cases, YES.At the very least you will pay the difference in what the car sells for and the balance on the note.
If your vehicle get stolen and the auto insurance pays the blue book value would the gap insurance cover the rest of the payment on your car loan and what is the limit?
Reaction .
Related video:
When a car is under lien and stolen/wrecked, the very first payee is ALWAYS the lienholder. You will receive nothing, and the lienholder gets reimbursed for the value of the car. Any outstanding would be your debt. Most insurers make deals with Lienholders to indemnify and lodge up the loan. Not always tho’. MAKE sure to ask the Insurance company how much was paid to lienholder, and ask for proof too!
How long do you have to pay off a car loan?
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When you took out the loan for the car the banking institution worked out how many months and for what amount the payment would be each month. If you have lost a job or are inbetween jobs, were ill, were in an accident, then if you are fair you can talk to the bank manager and they will usually be fairly willing to adjust your loan payments. The smaller the loan payment the longer it will take you to pay it off because of the interest applied on the outstanding loan. So, you could spend an extra duo of years paying this off. Banks don’t want the vehicle, they want their money..
Good luckMarcy
When you took out the loan for the car the banking institution worked out how many months and for what amount the payment would be each month. If you have lost a job or are inbetween jobs, were ill, were in an accident, then if you are fair you can talk to the bank manager and they will usually be fairly willing to adjust your loan payments. The smaller the loan payment the longer it will take you to pay it off because of the interest applied on the outstanding loan. So, you could spend an extra duo of years paying this off. Banks don’t want the vehicle, they want their money..
Good luckMarcy
Does paying off your car loan improve your credit score?
There is no direct benefit to your credit score to pay off an installment loan early, but indirectly it could help. Installment loans are established by a contract which details the amount of money borrowed and the terms, which is a monthly payment promise over a specific period of time. For auto loans, this is typically 24-60 mos. Lenders are particularly interested to see if borrowers understand this concept; that they are to pay their payment, on time, over the length of the contract. Therefore, you receive no “credit” for paying early. However there are indirect benefits. If your debt stream goes down, you are less likely to have credit applications denied, and a denial of credit is a bad mark on our report. There are other reasons to pay off an auto loan. Most likely you are paying more interest on the car loan (Five, 6 percent or more) than the interest you get if you leave money in a savings or checking account (less than 1 percent) , so if you have money laying around, using it to pay off your auto loan is like investing that money at the same interest rate as your car loan. Who wouldn’t want to make five percent interest on their money? This rule applies generally to all loans – if you have money you don’t need for an emergency, use it to pay off your high interest loans rather than let it sit around in an account that pays little or no interest. Comments: .
I recently bought a fresh car and about 6 months after applied for a credit increase on one of my cards. They infact denied my request because I still had a reasonable amount to pay off on my car. And this denial can lower your credit score. So if I had paid off the car then they would of accepted my credit increase and my score would of went up. The score itself might not go up because of the type of loan that it is but mortgage companies and other credit card holders will see that you have the funds available to pay off your bills/loans on time. .
It is especially unwise to owe money on a depreciating asset, and cars depreciate rapidly. You will soon end up owing more on the car than it is worth. Instead, pay cash for a car you can afford today. If you don’t have debt payments, you can invest your money and some day buy a better car, because you will have money.
I recently bought a fresh car and about 6 months after applied for a credit increase on one of my cards. They infact denied my request because I still had a reasonable amount to pay off on my car. And this denial can lower your credit score. So if I had paid off the car then they would of accepted my credit increase and my score would of went up. The score itself might not go up because of the type of loan that it is but mortgage companies and other credit card holders will see that you have the funds available to pay off your bills/loans on time. .
It is especially unwise to owe money on a depreciating asset, and cars depreciate rapidly. You will soon end up owing more on the car than it is worth. Instead, pay cash for a car you can afford today. If you don’t have debt payments, you can invest your money and some day buy a better car, because you will have money.
If you have a car repoed in South Carolina do you have to pay the remaining balance of the loan?
Yes. Additionally, you will be responsible for any late fees, repossession fees, storage fees, transportation fees, and legal fees and court cost incurred during the repossession process.
What can you do if the lender repossess your car and they get half of the loan and you cant pay the balance?
The lender will come after you for the remaining balance after the car is auctioned.You can either proclaim banckruptcy or work out a payment plan…or thelender can seek a judgment to garnish your wages.
What are your options when your financed car was totaled and you are not at fault but your insurance isn’t suggesting you enough money to pay off the loan?
Reaction .
This is not an uncommon occurrence. You might be stuck with a loan balance on a car that you can’t drive. The next time you finance a car with little or no down payment you might consider getting “gap” insurance to cover the difference inbetween the vehicles “actual cash value” and the amount you owe on it. This is an especially big problem when dealers suggest to “pay off your trade no matter what you owe” when buying a fresh car from them. You can attempt to make your case by getting evidence that the car was indeed worth more than what the insurance company is suggesting or you can get a lawyer. Good luck.
This is not an uncommon occurrence. You might be stuck with a loan balance on a car that you can’t drive. The next time you finance a car with little or no down payment you might consider getting “gap” insurance to cover the difference inbetween the vehicles “actual cash value” and the amount you owe on it. This is an especially big problem when dealers suggest to “pay off your trade no matter what you owe” when buying a fresh car from them. You can attempt to make your case by getting evidence that the car was indeed worth more than what the insurance company is suggesting or you can get a lawyer. Good luck.
If car is repossessed do you have to pay the balance on the loan and if so how much?
Response .
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.
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.
How do you pay off the car loan of someone else?
There is three ways to do this assuming that you are purchasing the car. You can call the Loan company and ask for the “pay off” amount and pay it in a lump sum or you can assume payments via a contract inbetween you and the loan holder. In this contract you promise to pay the loan on schedule while keeping the loan is their name. This can be risky for them. You can also assume the loan through the loan company. This benefits both of you by getting them off the loan relieving them of liability and it promotes your credit. As far as the title is worried it can be switched to your name regardless of the name on the loan. If the loan is still active there will remain a lien holder (the loan company) on the title. Y-THINK-Y
If your car is totaled and you still owe on the loan do you have to pay off the loan with the money or can you just proceed to make monthly car payments on the car you no longer have?
You can proceed to make payments if you want. All the bank cares about is getting their money. You should check with them just in case, the rules could be different with your loan. The insurance check will be made out to both the borrower and the lender and will require both signatures. The lender will be the person who takes final possession of the reimbursement and will apply it to the outstanding balance of the loan. If there is a deficiency and there very will may be depending upon the depreciation of the value of the vehicle, penalties, etc. the borrower is responsible for the repayment of such costs. ResponseCall and ask the people who you pay your payments to If you have GAP insurance on the car, then it won’t be a problem.
How is the balance of a car loan computed for the remaining balance after principal is paid by the insurance company and there is still a balance?
In most cases people shopping for used cars do not have the cash to buy a vehicle outright. They usually are in need of a loan for Used Auto Financing. It is significant to reminisce that you not only need to comparison shop on the price of the car but you should do the same when shopping around for used car financing. It could save you a substantial amount of money in the long run. Before accepting an suggest for financing a used car, educate yourself on the particulars of vehicle financing. Using online car loan websites to do research is an effortless and effective method. Get more detail at https://www.autofinance-ez.com/
Related video:
How do you get another car loan or will you have to wait until the loan is closed if you have a loan on a car that was totaled and insurance and GAP insurance will pay the total loan balance?
Yes surely you can get another. I was having the same query so I searched for it on net and came across the site AutoFinance-EZ. Interest rates are determined by the actual lenders and are influenced by several factors, including the severity of credit problems, the amount of down payment, and the degree of credit risk. Your auto loan accomplished will explain these factors, and tell you exactly what your interest rate will be. .
If you are not sated by the deal you are getting for a 2nd loan on your car, attempt looking for a payday loan.
If you are not sated by the deal you are getting for a 2nd loan on your car, attempt looking for a payday loan.
Do you have to pay the balance of your car loan after it is repossessed?
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yes you do so the bank or dealer wont report it to creditors..
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More Opinions .
When a vehicle is repossessed it must be legally sold for the fair market value, or as near as possible to that price..
The amount obtained by the sale is applied to the remaining balance of the loan. The borrower is responsible for any deficit amount plus applicable fees..
A repossession is almost always entered on a credit report.
Response .
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yes you do so the bank or dealer wont report it to creditors..
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More Opinions .
When a vehicle is repossessed it must be legally sold for the fair market value, or as near as possible to that price..
The amount obtained by the sale is applied to the remaining balance of the loan. The borrower is responsible for any deficit amount plus applicable fees..
A repossession is almost always entered on a credit report.
When a car is totaled with a balance owed to the finance company and there is no car insurance is is possible the finance company will give another loan and consilidate the payments?
Yes on certain conditions. The very first is that the amount still owed to the financial institution is not greater than the maximum amount permitted on the fresh vehicle being purchased. what i mean is if you were to buy a 06 Taurus for Ten,990 and you still owed 26,000 on your previous vehicle the financing institution would not permit you to buy a Taurus for 37,000 plus, so if you don’t owe much and your credit is good enough you should be fine!
Can you buy a fresh car and add on the remaining balance for another car loan?
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It is the discretion of the lending institution. When the dealer is processing the transaction they will showcase all the numbers in the document but it is up to the lending institution to accept. Most dealers are very “savy” and what they will do is inflate the price of the purchased vehicle in order to inflate the value of the trade in. They know the maximums the lending institutions will go and they play with the numbers. The lending isntitution will determine based on your credit worthines and the loan ratios.
It is the discretion of the lending institution. When the dealer is processing the transaction they will showcase all the numbers in the document but it is up to the lending institution to accept. Most dealers are very “savy” and what they will do is inflate the price of the purchased vehicle in order to inflate the value of the trade in. They know the maximums the lending institutions will go and they play with the numbers. The lending isntitution will determine based on your credit worthines and the loan ratios.
What should you do if a co-signer on a car loan totaled car with no insurance now you are paying the loan?
You should sue the co-signer. Even tho’ you may be the primary person obligated to pay the loan, he is responsible to you for totalling your car. You still have to pay the loan company because you took out the loan; but the co-signer caused the loss. You won’t be able to force the loan company to take payments from him tho’. Getting him to reimburse you will be your problem.
If in an accident and the car has been determined a total loss do i have to still pay on the loan?
Response .
YES. This is what is known as being “upside down” on the loan. The best you can hope to do is appeal to the adjuster on the claim to revise the Actual Cash Value of the vehicle to match the amount left due on the loan. Sometimes this is not possible. This is the major drawback to financing a vehicle for a longer period than Two or Trio years.
YES. This is what is known as being “upside down” on the loan. The best you can hope to do is appeal to the adjuster on the claim to revise the Actual Cash Value of the vehicle to match the amount left due on the loan. Sometimes this is not possible. This is the major drawback to financing a vehicle for a longer period than Two or Trio years.
What is a GAP policy for a car loan?
Reaction .
Gap Insurance will pay the difference inbetween the vehicle value and the loan pay off amount..
For example : you car is valued at $17,000 but the loan amount on the car is $20,000 – if your car is totaled your basic car insurance will only pay up to the car’s value. A GAP Policy will pick up the $Three,000 difference..
Therefore you aren’t making payments on a vehicle that is at atotal loss..
IMO- is a must have!
Gap Insurance will pay the difference inbetween the vehicle value and the loan pay off amount..
For example : you car is valued at $17,000 but the loan amount on the car is $20,000 – if your car is totaled your basic car insurance will only pay up to the car’s value. A GAP Policy will pick up the $Three,000 difference..
Therefore you aren’t making payments on a vehicle that is at atotal loss..
IMO- is a must have!
In regards to the question if you volunteer a reposession do you have to pay off your car loan what happens if you can’t pay that balance?
Voluntary RepossessionOnce this vehicle has been auctioned off, the remaining balance that is left on this loan will be your responsibility to pay off. You can contact this collection agency once you receive a fresh statement of this balance. Usually the two options that you have is either make monthly payments or you can negotiate a settlement. Your best bet is to save anywhere from 30-50% of the remaining balance, and lodge. Get everything in writing before making a final payment.
Are you responsible to pay remaining balance of car loan after spouse death even if your name was not on bank loan note and no estate was left?
No if you send a copy af the death certifact to the loan company they should should stop collecting on it .
Is there a penalty for paying off car loans early?
Sometimes. You’ll have to read the lender/borrower agreement or contract. It’s in the puny print..
yes and not just car loans
yes and not just car loans
If you are in a car accident and the car is totaled does your car loan get paid off through insurance?
Not unless you have the fresh option in insurance of the fresh car replacement. If your car is totaled, you will be paid the Blue Book price for your vehicle. This sum is the amount your vehicle is worth at this time. Any amount over this sum that is still owed to a car loan is still due.
After you’ve signed the papers at an auto dealership and driven the car off the lot the finance company wont cover you for the loan and the car gets totaled and its insured who pays for the vehicle?
Next time you post a question, read it over before hitting “save” (your question is a little hard to understand). Once you sign the papers for the car, it is yours. If you get in a car accident and the car gets totaled, the insurance company for the at fault driver is responsible to pay for the “fair market value” of the car. If you are at fault and you have collision, your insurance company will pay you fair market value less the deductable. Please be aware, if your loan was for Ten,000 but your car is indeed only worth 8,000 then you will be stuck paying the extra Two,000 (unless you purchased gap insurance from the loan company)
I had no car insurance and the car is now totaled and I still owe on the loan do I have to repay the total amount or can I set up arrangements to pay a lesser amount?
When you got the loan, the company which you took out the loan with paid the utter sum to the car dealer. They need to be repaid that sum. Your arrangement was that you would pay a certain amount each month/week, and they would very likely see no reason why you should pay them less. They entered into an agreement with you, and will most likely expect you to keep to the terms of it. Depending on how long is left until the loan, at present rates, would be repaid – they might agree to lodge for lower payments for a longer period…. but I would be sceptical that they would lodge for lower payments for the same period. The best thing to do is – using a phone which they would not be able to connect to your name, ring them and ask. Make a note of any person’s name that you speak to, especially if they make an suggest which you think might be acceptable. They will most likely be ready to talk about extending the period, and you have nothing to lose by asking anonymously.
What is the Fastest way to pay off a car loan?
As much as possible as soon as possible. Indeed, the more you pay above and beyond the required monthly amount should come directly off the balance without interest. If your loan is not structured in this way, then you should refinance with a fresh loan that lets you pay extra amounts toward the premium whenever you want.
Car loan was written off do you have to pay it?
Writing off debt is an accounting entry to acknowlege that the asset they have (the loan) is not performing and that investors/readers of the financials, should not consider it valuable..
Again, it is a required accounting entry – it does not effect your debt to them, discharge it or reduce it in any way. You still owe. And they will…in fact must (to sate those same investors and regulators that read those financials), attempt and collect it or get some value for it.
Again, it is a required accounting entry – it does not effect your debt to them, discharge it or reduce it in any way. You still owe. And they will…in fact must (to sate those same investors and regulators that read those financials), attempt and collect it or get some value for it.
Who pays remainder of loan when car is totaled?
It depends. if you have GAP insurance, the insurance company will pay the payoff amount. If you do not have GAP insurance, it is the holder of loan’s responsibility to pay off the accomplish open loan regardless of the amount paid by the insurance company.
Will gap insurance pay off the balance of your loan if your vehicle is totaled?
In California it is normally necessary for you to presently have comprehensive and collision coverage in place at the time of the accident for your gap insurance to take effect.
Related video:
Your car was totaled no other car involved you had total coverage insurance and GAP insurance will you be reimbursed for your loss or will it all go to the finance company?
the very first priority of the insurance company is to pay of the loan holder (so the value of your car is determined and out of that) whatever is left over will be sent to you. If the value of the car is less than what you owe you are stuck with the balance as far as gap coverage goes you will have to check with your insurance company they’re all different
I had a wreck. Insurance wants to total the car. When I purchased the car I purchased GAP insurance. I packed Bankruptcy Chapter 13. Wondering will the GAP insurance cover balance of after insurance?
Yes, you have taken a brainy and wise step. When your car will be totalled by the insurance company, than the balance amount of the loan which you will have to pay will be paid by the gap insurance. This is the purpose of gap insurance..
Gap insurance pays for the difference in the insurance settlement and the loan amount when there is an accident or a misfortunate event that leads to a claim like theft of the vehicle..
The purpose of insurance is to save a person from financial problems.
Gap insurance pays for the difference in the insurance settlement and the loan amount when there is an accident or a misfortunate event that leads to a claim like theft of the vehicle..
The purpose of insurance is to save a person from financial problems.
How long do you have to pay off the remainder of the loan balance if you car is repoed?
The contract should include the applicable terms in case of a repossession. If there are no specifics as to the activity, the laws of the state in which the vehicle loan was granted apply.
If the car is reposessed do you have to pay off the balance of the loan or the late payments?
Yes, you contracted to borrow money. That money was loaned to you, it is gone. Now you have the principle and the interest. The vehicle that was repossessed only secured the loan. The lender did not want your car, but your failure to pay as promised left them no choice but to secure some sort of payment. Now you have what remains, plus costs and continuing interest. If you fail to pay now, you may have no choice in how the lender collects the utter amount.
Is it legal for the insurance company not to pay the loan company on a totaled car?
Yes. The insurance policy is a contract. All it requires the insurance company to do is to pay the fair market value of the vehicle. You would need to get what is called gap insurance to pay the difference inbetween the market value and the loan value.
When you pay off a car loan and you already have the title what do you do?
Get the lenders name eliminated from the ownership. **actually the lenders name will not be on the ownership papers as anything other than “seller”, once your loan is paid out, you have no worries, the car is yours. The bill of sale, ownership and finance papers should showcase you the term of your finance, monthly payment, interest rate, number of payment, etc… when the terms have been carried out, you will be the only legal holder of the vehicle
What are your options if your car is a total loss and you have a loan on it?
YOU PAY DIF Inbetween ‘BOOK VALUE’-usually Trade InValue/Wholesale-AND WHAT YOU OWE…did you think you’d ‘slide’ onrest? didn’t know ‘rest’ existed?
Gap insurance is from the auto loan or your insurance on the car?
GAP (assured asset protection) auto insurance coverage is one the most necessary, yet least understood insurance products available to vehicle owners. It is generally purchased through the auto dealership or leasing company at the time of the initial purchase or lease. It’s purpose is elementary: If your car is totaled, gap insurance will cover the difference inbetween what your insurance company says your car is worth (actual cash value) and what you still owe on your loan or lease.
If your balance on your car includes the interest for the remaining eight monthsleft on loan will you have to pay that amount if you are paying the car off eight months early?
Was there a special provision which stated all extra interest charges required to be paid when you bought the car? If not you don’t pay the interest if you pay the loan off early.
Car totaled insurance value car at 16000 and loan amt is 12400 can you use your gap insurance to pay off car loan?
If they gave you 16000 on the car, you would not need gap insurance since your loan amount is 12400.
Are used car loans usually hard to pay off?
It depends on how much the car costs, your down payment, and how much you are making. If you have a good plan to pay it off, it should not be too difficult.
Can your insurance company takie loan car without paying you out all the money?
What an insurance company pays for a total loss vehicle has nothing to do with the amount owed on the car. Auto insurance is based on the actual cash value of the vehicle while the amount owed on the loan has nothing to do with the ACV of the vehicle. If a vehicle is totalled and you owe $5000 and the ACV is $8000 the company will issue a check for $5000 to the finance company and a check to the policyholder for $3000. If the numbers are in switch roles the insurance company pays the ACV of $5000 and you still owe $3000 to the finance company. It happens when you pay to much for the car, build up interest and fees, add other amount to the loan like if you were upside down in the last loan and they add the balance to this one. Anyone purchasing or leasing a fresh vehicle should ask their agent about GAP insurance. Because a fresh vehicle depreciates so prompt at very first you need this coverage. The dealer finance department will sell it to you for a chunk of dollars and your insurance company will sell it to you for a duo of dollars a month. The difference is amazing. GAP pays the difference in what the ACV is and what is owed on the vehicle.