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?

Answer provided by
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Shannon Martin
Answered on May 13, 2021
“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.”
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