What happens if I get into a not-at-fault accident with my Audi and I don't have gap insurance?

I have a financed 2016 Audi A3 and I still owe $22,000 on my loan. My insurance marked it a total loss and I don't have gap insurance. If I do get a check from the other driver's insurance company, does that get turned over to my insurance? How can I pay my loan?

Answer
“If you get into an accident and don’t have gap insurance, you will need to pay whatever you owe on your loan after the other driver’s insurance pays out.
Once the other driver’s insurance company determines the actual cost value of your vehicle, they will issue a check. Normally your insurance will work with the other driver’s insurance, so they may receive the check first.
From there, they will pass it along to you or send it to your lender. Since your vehicle is financed, it may be a requirement of your loan that the funds be applied directly to your balance.
Should there still be a balance after the payout, you’ll need to continue to make your loan payments until it is paid off. “
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Emily Maracle
Answered on May 03, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
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