ghernandez7675 asked:
Hello, my used car just got declared totaled by the insurance company and they are going to give $10k for it. But this wont cover what I owe on the car and my credit is not good… What happens if I take the $10k and just purchase a cheap used car? What are my options here? Thanks,
Thank you for your reply. Unfortunately, my credit is no good so I wouldnt be able to roll into another finance. I plan to simply purchase a cheap used car, but wasnt sure what my options were with the wrecked car since the finance co. still holds the title. Thanks again…
The insurance is only obligated to cover the actual value of your car, not what you owe on it.
What you owe includes finance charges and intereset. This is not the insurance companies responsibility.
After you accept their offer, you can either pay off the loan your self or roll the balance over into another loan on another car.
For automobile insurance the most efficient way to get a fantastic rate is do a rate comparison on car policies. Make sure that you choose similar options with the same deductibles, auto type, location, etc so that all options are an accurate comparison.
What I always recommend is an online comparison quote at since they have top name insurers and can give several prices on car insurance polices.
Insurance isn’t supposed to pay you what is owed on your car loan. It will only pay your for the actual cash value of your car. If you owe more than that, that’s your problem and you pay it yourself.
my suggesting would be getting as much information as you can before taking any action,here is a good place for that purpose.
ghernandez7675, Try getting an online insurance quote It’s free and quick to do.
Good Luck.