What should my aunt do if she doesn't have gap insurance and her car was totaled?

My aunt recently got into a not-at-fault accident. Her car is totaled and she doesn't have gap insurance. She owes $13,000 on her loan and her vehicle is only worth $7,000. What should she do?

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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.
“While this is a terrible situation, there isn’t much your aunt can do without gap insurance.
Your aunt should confirm that the price the other driver’s insurance company is offering is fair. There are various websites that she can check to confirm the vehicle’s value, such as Kelley Blue Book. If the insurance company isn’t offering a fair price, she may be able to negotiate a higher payout amount.
Beyond this, she can see if she has the ability to keep the car and repair it. This would have to be negotiated through the insurance company, and she may be required to register the vehicle as salvage.”
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