I am a lawyer in CT and practice in this area of the law.  Unfortunately, the finance company is different in that they loaned you money and expect it to be repaid.  the insurance company is only required to give you the value of the car.  the value of the car, as here, is not equivolent to the amount owed.  if you can talk to the loan company about accepting less for the car as a payoff, maybe they will accomodate you.  however, the loan company has a right to file a claim in court to seek the balance of what is owed under the contract that you signed.