What options do I have if my car is totaled and I still owe more on the loan than the vehicle is worth?

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Since the other driver was at fault, contact their insurance company directly to file a third-party claim, which may result in a higher settlement offer than your own insurer provides. Request a written breakdown of how the total loss value was calculated, and challenge it with your own comparable vehicle listings if the offer comes in below what you owe.

Gap insurance, if you have it, may cover the difference between the payout and your loan balance, so check your policy or contact your lender. If you do not have gap insurance, you may be able to negotiate the settlement amount or arrange a payment plan with your lender for any remaining balance after the payout.

Start gathering local listings for comparable vehicles so you have supporting information ready when the insurance offer comes in.

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I was in a car accident recently. The police officer determined the other driver was at fault. My insurance company indicated my vehicle will likely be a total loss. I still owe money on the loan, and I’m concerned the insurance payout may be less than the remaining balance. What options do I have?

Lexi, Chatbot

I'm sorry to hear about your accident; that can be really stressful. Have you already filed a claim with your insurance company regarding the total loss?

Yes, I filed a claim with my insurance.

Lexi, Chatbot

Are you currently in contact with the other driver's insurance company about the accident?

No.

Lexi, Chatbot

Is there anything else the Lawyer should know before I connect you? Rest assured they'll be able to help with your total loss situation.

Yes.

Legal Eagle

Hello, I’m Legal Eagle. I’m an attorney who works in your area of law, and I’ll help you sort this out today. I’ve read what you shared, so let’s go over what’s happening and what your best next steps look like.

Legal Eagle

Start gathering local listings for comparable vehicles so you have supporting information ready when the insurance offer comes in.

Legal Eagle

133,377 satisfied customers

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