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If I was involved in a car accident and my car is considered a total loss, is the negligent driver’s insurance company responsible for paying the balance of my car payment?

April 26, 2017Accident car COMPANY driver Insurance involved loss negligent total

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If I was involved in a car accident and my car is considered a total loss, is the negligent driver’s insurance company responsible for paying the balance of my car payment?

1 Answer

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10 Posted

No. The insurance company is only responsible for paying the fair market value of your car. Any debt you may owe in excess of the fair market value of your car is your responsibility. When purchasing and financing a car, it is recommended that you look into purchasing “GAP” insurance. This type of insurance will pay the balance of your car payment after you have received a settlement for the vehicle’s fair market value.