I hit a deer head on smashed the whole front end of my car. I called state police they came filled out report they took my information and insurance card ( thought I still had insurance) police called yow company. My car is not drivable
State police and tow drive both said its totalled. I haven't told finance company yet bout my car. What's gonna happen
What will happen? Instead of having insurance paid all or a portion of your loss you will pay the finance company entirely what are you owe
You will owe the amount of the loan. The terms of your loan will control. Also, your license will be suspended for driving without insurance.
You will owe your finance company the balance of the amount you owe no matter whether you had insurance or not. The only way to avoid this in the future is to always purchase GAP insurance if you finance a vehicle. GAP insurance pays off your car loan in the event your vehicle is totaled. Otherwise, you only receive Fair Market Value minus depreciation plus scrap or salvage value.
In your case, you now owe on a vehicle that you cannot drive and have zero money to use to replace it. Expensive lesson unfortunately.
This answer posted on Avvo is for informational and educational purposes only. There is no attorney-client relationship created or formed and you should not rely on this as legal advice. The suggestion is made that if you wish to protect your rights, you consult with an attorney immediately.
You are going to have to pay back the finance company out of your own pocket unless you declare bankruptcy.
The finance company doesn't care about any of that. They don't care if you're car is running or not; they don't care what happened; all they care about is getting your payment every month. If they don't, you can expect to be sued. Sorry, but that's the way it is.
You signed a binding contract with your finance company so regardless of whether your vehicle is driveable or not, you are going to owe them for the balance of the loan. If you stop paying, they will probably file a lawsuit against you (since they won't be able to recoup any of the value of the vehicle by repossessing it now that it is just a pile of metal).
You may want to consult with an attorney who specializes in bankruptcy/debt-debtor law to go over your options. You can use the "Find a lawyer" link at the top of the screen for the names of some in your area.
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