Will uninsured motorist property damage coverage pay for what I owe on my car loan in Georgia?
I was involved in an accident with an uninsured driver. The insurance said the car is totaled, but I still have a loan on the car. I have UMPD coverage in GA. How does this work?
“Your UMPD insurance coverage will pay out the actual cash value of the vehicle, less your deductible. If this is more than what you owe on the car loan, the insurance company will generally issue a payment to the lienholder and then issue a payment to you for the remaining money.
If the value of the car is less than what is owed, the insurance company will pay the lienholder up to the value of the vehicle and you will be responsible for the difference.
If you purchased gap insurance when you bought the car, then it will cover this difference. Talk to your lienholder about what options you might have.”
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Read advice from car experts at Jerry
Browse by topics
What others are asking
Should I apply with a different lender if I was already denied a loan for $20,000?
"I want to buy a car for $20,000. I don't have money for a down payment, but if I had to, I could probably get a cash advance from my credit card to put down $2,000. My credit score is 658, but many of the derogatory marks are from my parents opening up credit cards in my name and using them without my consent. I was already denied at one lender. Should I apply with a different one?"
Jun 02, 2021
"What should I do if the other person’s auto insurance only accepts partial liability? "
"I was in a car accident where the other driver ran a stop sign. I did not have a stop sign. He got a ticket, but his insurance is only claiming 70% liability because of the point of impact (my front bumper, his passenger side door). Should I accept the 70% or fight it? "
May 06, 2021
Why isn't the car insurance claim check issued in just my name?
The claim check I received from my insurance carrier is made out to me and the auto body shop. I want to keep any extra money, not give it to them. Why isn't it just in my name?
Apr 14, 2021