PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Loans
Car Loan
Compare Car Loans with Jerry
Jerry's Expert Advice
Car Loan Guides
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
Should I buy a car outright with my total loss settlement money?
"Should I use the settlement money from my totaled car as a down payment for a new car or buy a used car outright? I recently got in a wreck in which my Honda was considered a total loss. The insurance gave me the full value of the car, which is more than enough to pick up a decent used car of the same value."
Johnny Puckett · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“It really depends on your needs.
If a
used car
of the same style and value that you had adequately fits your needs, you would be better off just paying cash and saving yourself from those monthly payments. However, if you find a better car for a few thousand more that would better fit your needs, financing the rest of the car would not be a bad idea. Consider if the settlement money is enough for a sizeable
down payment
.Whatever you decide, think it over before signing anything and be careful not to go overboard.”
View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance for Your Car
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
