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Theoreticaly, this is what will happen. Your car insurance will pay off your current car, minus any gap, thus creating a pay off on your credit. Which, will not only get you another car, but, probably at a better interest rate.

Added: What do you mean by a "new" car? Do you mean brand new or just simply new to you?

Remember - insurance will only pay up to a maximum of what the wrecked vehicle was worth BEFORE it was wrecked, which may not be enough to get you a brand new vehicle.

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15y ago

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