“Although you can no longer drive your vehicle, you are responsible for the loan balance. As it is currently overdue, it will continue to impact your credit until you start paying the balance again.
While this is an extremely unfortunate situation, the best thing you can do is to resume payments.
Depending on how long it’s been since your last payment, your lender may have sent your account to collections. If that’s the case, be sure to contact the collections company.
You can let them know about your situation and also set up a payment plan. You should also reach out to your lender.
Even though you will be resuming payments, your gap insurance
should still pay the $1,200 that was left when the car was totaled. Any payments that you make now may be reimbursed or refunded once the claim has been approved.