{"id":353091,"date":"2017-02-14T16:10:33","date_gmt":"2017-02-14T21:10:33","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/injury\/car-accidents\/my-car-was-totaled-but-i-still-owe-money-on-it.html"},"modified":"2025-10-14T09:27:30","modified_gmt":"2025-10-14T14:27:30","slug":"my-car-was-totaled-but-i-still-owe-money-on-it","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/injury\/car-accidents\/my-car-was-totaled-but-i-still-owe-money-on-it.html","title":{"rendered":"My Car Was Totaled, but I Still Owe Money on It: What Happens Now?"},"content":{"rendered":"\n
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My Car Was Totaled, but I Still Owe Money on It: What Happens Now?<\/h1>\n\n
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\n By Christie Nicholson, J.D.<\/a> | Legally reviewed by Laura Temme, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

When your car is totaled but you still owe money on the loan, you remain responsible for paying the full loan balance<\/span> even though the vehicle is no longer drivable. Insurance typically pays only the car’s <\/span>actual cash value<\/span> at the time of the accident, which may be less than your outstanding loan balance<\/span>. This can create a gap you must cover. Gap insurance<\/span> can help bridge this difference by covering what you owe beyond the car’s depreciated value.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

If your vehicle is totaled in a motor vehicle accident<\/a>, you will likely receive a check from the insurance company<\/span>. Once an insurance company<\/span> deems a car totaled, you’ll have difficulty reselling it. In fact, there’s a good chance you won’t be able to drive it.<\/p>\n

What happens if you still owe money on your totaled car<\/span><\/a> or truck? It doesn’t seem fair that you should have to pay the remaining balance<\/span> on a vehicle that isn’t drivable. However, the bank carrying your auto loan<\/span> expects you to pay the debt in full, regardless of the condition of your car.<\/p>\n

Insurance claims<\/span> can help cover many of the costs that come with a car accident<\/span>, but the insurance settlement<\/span> may not cover the full outstanding loan on a financed car<\/span>. This leaves you making the remaining <\/span>loan<\/span> payments<\/span> on a car you can\u2019t drive.<\/p>\n

There\u2019s a lot to be aware of if you end up in this situation. In this article, we’ll explain:<\/p>\n