PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
How can I make sure the claim payout is enough to pay my car loan in full?
I was involved in an accident where the other driver hit me and was at fault. Her insurance company is trying to pay me $6,500 for my car, but I still owe $9,200 on the loan. It isn't fair that I will be out of a car and still have to make car payments. What can I do?
Shannon Martin · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“This can be a tight spot to be in. First, check to see if you purchased
gap insurance
at the time you bought your car. If you did, then you are in luck—gap insurance will pay the difference between what is owed to the lender and what your claim check is for. If you do not have gap insurance, then your options are limited. Insurance companies are required to pay for the actual cash value of the car, not the loan, which includes interest. If the value of your vehicle is lower than your current loan balance, this means that most of your payments have gone toward the interest of the loan.
Once you get the appraisal, make sure it seems accurate and that they are comparing similar cars to get this number. Unfortunately, if they do not negotiate the appraisal, you will be stuck still making payments on a car you don’t have anymore.
“
View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies