Auto Insurance Claims: Car totaled with loan, gap insurance, insurance comapny

Question
I was recently in an accident and the other driver was at fault. My car is totaled and the driver's insurance is going to pay $14,000. However, I have a loan with the dealership for $15,000 and they told me the check would be cut directly to them to pay for the loan, leaving me with no money for a replacement car. Does the driver at fault's insurance owe me anything in this regard or am I out of luck?

Answer
Hi Parker,

The insurance company owes you for the value of your car just befor the wreck, no the balance of your loan. You should research the value of your car before you accept their offer. You do have the right to dispute the amount offered if you can prove it is wrong. However if it is in an acceptable range there is nothing else you can do. You will still owe the balance to the finance company.

The next time you finance a car you should consider purchaseing GAP insurance which would pay the difference between what the insurance comapny pays and the balance of your loan.

I hope this helps
Richard Hixenbaugh