What if my car was totaled in an accident the insurance pay off debt?

When your car is totaled in an accident, the insurance company will typically pay off any outstanding debt on the vehicle. This is because the insurance company considers the car to be a total loss and will pay you the actual cash value (ACV) of the car. The ACV is the amount that the car would have sold for on the open market before the accident.

If you owe more on your car loan than the ACV, the insurance company will pay off the loan and you will not be responsible for any further payments. However, if you owe less on your car loan than the ACV, the insurance company will pay off the loan and you will receive the remaining balance.

In some cases, you may be able to negotiate with the insurance company to get a higher payout than the ACV. This is especially true if you have GAP insurance, which can cover the difference between the ACV and the amount that you owe on your car loan.

If you are involved in an accident and your car is totaled, it is important to contact your insurance company as soon as possible. The insurance company will be able to help you through the process of filing a claim and getting your car repaired or replaced.