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What do I do if my car is totaled and I owe more money on my loan?
I have bad credit and still owe $10,000 on my car after my insurance payout. What should I do? I'm still going to need to get another car.
Emily Maracle · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“When your insurance payout doesn’t cover the full balance of your loan and you don’t have
gap insurance
, you’re still required to pay the remaining balance. You do have a few options. If you can get by without a car for a few months, you could try to pay down the balance of your loan before shopping for a new car. It may also be worth trying to find a used car that you could pay cash for.
If neither of these options is feasible, you may have to reach out to lenders to see if they will allow you to roll the cost of your prior loan into another vehicle loan.
Since you have bad credit, this may be hard, as creditors could see you as a risk for non-payment or a loan default. You’ll have to weigh your options and see what will work best for you.
“
View full answer
- Gregory R.
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