fbpx

Do I Continue To Pay The Lien Holder If My Car Is Totaled? – Palmdale, Lancaster and Tehachapi, CA

California Cullen Insurance Agency logo

Yes, you still must pay the lender if you have a car loan, regardless of the vehicle’s condition. Basically, you’ll owe the lender less than what the car is worth, so you can use the payout from the Auto Insurance Company to pay off the loan and pocket the rest to go toward the purchase of another vehicle.

However, if the amount the insurance company pays for your totaled car is less than what you owe, you’ll have to come up with the rest of the money to pay off the loan–unless you have gap insurance.

If you have any questions regarding your insurance or would like a quote, please feel free to contact your local Cullen Insurance Agency.

Leave a Comment





California Just Had The Biggest Earthquake In Decades. Why We Can’t Sell You Earthquake Insurance

California just experienced the largest magnitude earthquake in over 2 decades. A 7.1 Richter scale shaker that left ...
read more

Earthquake Survival Checklist. Be Prepared!

Following the biggest California earthquake in nearly a decade, people everywhere are asking how they can protect themselves ...
read more
buying a used car

Spot & Avoid the Scams When Buying a Used Car

Extra care is needed when buying a used car because pre-owned cars can have a history of accidents ...
read more