Wrecked my car i’m still financing

[enginehead]

(Long story short, i swerved to avoid being hit by another car and i hit something on the shoulder hard as fuck. my car no longer turns on but is able to roll, the airbag deployed so everyone is telling me that it’s “totaled” in the eyes of insurance )

Now my question
There was no police report, and i haven’t told my insurance, it’s been a few days since the incident. I still owe more than what it’s worth what do I do

 

[kejuli]

@enginehead Report it to your insurance and figure out if you have Gap coverage. I’m assuming it’s in a tow yard in which case this needs to be reported yesterday. The insurance company will want to get the vehicle out of the tow yard asap and if you keep delaying they may make you responsible for the storage fees.

 

[enginehead]

@kejuli no it’s at my house
and i’m not sure if i have gap, i need to find out

 

[former32%C2%B0mason]

@enginehead You don't really have any options in this situation. You don't own the vehicle because it's still being financed. You need to file a claim, let your insurance pay the actual cash value to the bank and take the car, and you will be left owing the difference if you owe more than it's worth and you didn't get GAP coverage. Be aware, that balance will likely be due in full immediately after insurance pays the bank because their collateral is gone.

 

[enginehead]

@former32%C2%B0mason I have like no money right now but i do work full time. i just spent everything cause back to back tragedies happened. Should i save up a grand or 2 then make the call because i cannot pay shit now except my insurance and car note

 

[former32%C2%B0mason]

@enginehead Depending on how under water you are on the loan, you may be able to roll the negative equity into another loan. Make sure you always take the GAP coverage if you will owe more than it's worth.

 

[enginehead]

@former32%C2%B0mason it’s not in the tow yard it was towed to my house, it’s fine where it’s at. i’ll be a few grand under. im also 19 M

 

[former32%C2%B0mason]

@enginehead That doesn't sound terrible. At your age, an at-fault accident on your record is going to be tough. The next vehicle you buy should be a beater that you get with cash so the insurance premium will be less extreme for a while.

 

[enginehead]

@former32%C2%B0mason man this is my second at fault single accident in a year the car i had now is a beater 08 honda

 

[former32%C2%B0mason]

@enginehead That's pretty bad. You're going to be basically uninsurable for a few years. You may need to take a break from driving. Once this car is gone, you can purchase a non-owner's policy to maintain continuous coverage and take public transportation for a while.

 

[enginehead]

@former32%C2%B0mason that’s so impossible i live in the country. here’s the plan. insurance will cut me a check and i’ll use that check to buy. a motorcycle so i can get to and from work and just pay off my car in a few months

 

[former32%C2%B0mason]

@enginehead How would that work? You won't receive anything from insurance if you owe more than the vehicle is worth. It all goes straight to the lienholder first to pay off the loan. If there's nothing left over, you never see anything.

Also, with two recent at-fault accidents on your record, any insurance is going to be extremely expensive, and getting a motorcycle is a very bad idea if you want to continue living.

 

[enginehead]

@former32%C2%B0mason also why can’t insurance cut me a check and then i continue to pay my car off and i put all my money into the debt and in 4 months have the whole car payed off, and a motorcycle

 

[enginehead]

@former32%C2%B0mason if i got a bike there would be no need for insurance