Overhaulin'

what happens when your car loan is upside down and it gets totaled?

What if I am found at fault? And I'm not sure if I have GAP insurance? How do I know whether I do or not?

Public Comments

1. Assuming the other party was at fault, or you have collision coverage, and it is totaled, insurance will give you the fair market value of the vehicle, adjusted for condition, at the time of loss. If on collision, minus your deductible. The check will go directly to the finance company. If there is a balance left, you will continue to make payments until the balance reaches zero, unless you also have GAP insurance which would pay the difference between fair market value, and what you owe.