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I recently totaled my car. If I owe the lien holder $5000, but the value of the car is only $3500, am I responsible for the remainder to pay off the wrecked vehicle?

Yes, if your car was totaled and the claims adjuster working your physical damage claim (collision or comprehensive) found the actual cash value of the vehicle to only be $3,500 but you owe $5,000 you would be responsible for the loan amount difference of $1,500.

If you had GAP insurance on the vehicle then it would pay the balance of the loan due after your primary insurance provider paid out the ACV settlement.

 

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Question Details
This car insurance question was asked on 9/26/2006
This auto insurance answer was last updated on 10/3/2006
Rosalind M requested this car insurance solution.
Rated 0 out of 10 based on 0 votes.
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