Do I still have to make car payments

I wrecked my car and it took my insurance a month to total the car. Do I still
need to make car payments until my insurance and gap pays the car off?

Asked on September 6, 2017 under Accident Law, Georgia


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Yes, you do. The financing company (bank, dealership, car manufacturer, etc.--whomever provided the financing) does not care if the car is used or not, or even if it is usable or not. You entered into a contract with them to advance or provide the money to buy a car, in exchange for which you agreed to make monthly payents. Since they upheld their end of the bargin--they provided the money--you are contractualy obligated to uphold yours and keep paying, regardless of what happens to the car, unless and until the loan is paid in full (e.g. by the insurance and GAP insurance). So you have to pay until the insurance, GAP, etc. kicks in and takes care of this.

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