Will Insurance Cover My Car Loan If It’s Totaled in an Accident?
After the shock of a car accident wears off, the last thing you want to hear is more distressing news. But it’s not uncommon for your day to go from bad to worse after your insurance company calls to tell you that your car is a “total loss.” In a frustrating turn of events, not only do you have to deal with losing your everyday vehicle, but you also remember that your car was financed with a loan to which you still owe a balance. Now what?
Do you still have to make loan payments on a car that no longer exists to you? If the accident was a result of another driver’s negligence, will their insurance company pay off your loan? Well, it’s complicated. We’ve outlined everything you need to know.