Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Full Bio →

Written by

UPDATED: Apr 1, 2012

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

Insurance Question from Corona, CA

Asked on 04/01/2012

I just got into an automobile accident w/my pickup 1/2 ton , and I’m wondering how does it work with a Total Loss and still being financed. I recently was in an accident , My fault . I have Full coverage and I was making payments, I had only made 6 payments and they said the truck was a Total Loss. How does that work with me still owing on the vehicle, I am Disability and need a vehicle , will I be receiving the payoff for the loss of my truck and I can use this to purchase another vehicle or what happens with the payoff. Also what would happen if I did receive the payoff and then filied bk. Will I be sued????

Answer given on April 03, 2012

If your truck is totaled in an accident and there is a loan on the truck, the insurance settlement check will be made out to you and the bank, presuming they are listed on the policy. If you have gap coverage on the insurance policy then they will pay the full amount you owe on the truck. There may also be a clause in the loan that will accept a total settlment as payoff for the loan. You need to check with your insurance company and lender to see if either one applies.If not, you will get the actual cash value of the truck, which may not be enough to pay off the loan. If a vehicle is damaged early in the loan program it may have depreciated more than the loan amount has. If you do not get enough to pay off the truck you may be able to work something out with the lender to transfer that amount to a new vehicle. If you have paid on time and have a good record with them, they may be willing to work with you.


IMPORTANT NOTICE: These answers are for general information purposes only and are provided by the person answering and FreeAdvice.com AS IS. It has not necessarily been reviewed by the management staff of FreeAdvice.com nor is it binding any insurance agent, broker, or other insurance professional or any attorney or insurance company. Insurance laws, regulations and practices vary from state to state and insurance policies and practices differ from company to company, by type of policy, by state and locality and by type of insurance. Tiny variations in the facts, policy language or a detail not set forth in a question often can change the outcome or a professional's conclusion. Although FreeAdvice.com has confirmed that the answer(s) was/were provided for the account of an experienced insurance professional, that professional may not be licensed in the state referred to in the question, and may not be experienced or up to date in the subject area. Unlike the answers provided here, upon which you should NOT rely, for personal advice you can rely upon we suggest you consult a licensed insurance professional in your area or retain a licensed attorney listed on AttorneyPages.com to represent you.