Am I supposed to continue making payments on a car that is a total loss?

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Am I supposed to continue making payments on a car that is a total loss?

I was making payments on my car. Then 4 days ago a truck ran a stop sign, went right in my path and totaled my car. The insurance company is sending me a check to pay the car off. However, if I do that I will be without a car.

Asked on January 22, 2016 under Accident Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

Yes, you have to keep making the monthly payments, or else pay off (e.g. as a lump sum) the amount you owe on the car. The financing agreement or contract between you and the lender/bank/dealership/etc. (whomever provided the financing) is not affected by the fact that the car was totalled; you still need to honor that contract, which means making the payments or paying the balance.


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