“This can be a tight spot to be in. First, check to see if you purchased gap insurance
at the time you bought your car. If you did, then you are in luck—gap insurance will pay the difference between what is owed to the lender and what your claim check is for.
If you do not have gap insurance, then your options are limited. Insurance companies are required to pay for the actual cash value of the car, not the loan, which includes interest. If the value of your vehicle is lower than your current loan balance, this means that most of your payments have gone toward the interest of the loan.
Once you get the appraisal, make sure it seems accurate and that they are comparing similar cars to get this number. Unfortunately, if they do not negotiate the appraisal, you will be stuck still making payments on a car you don’t have anymore.