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The insurance pays the lender. The lender then has you pay the remaining balance of the loan, after the sum of the insurance payment is taken out. It's so unfortunate, but it happens to a lot of people. Just a note to anyone with a similar situation... When you purchase a new vehicle, you should inquire from your insurance agent, how much extra it would be to add "Lease Gap" or "Loan Gap" coverage. This is generally only available from an A-rated company such as American Family or State Farm, and only for the first 4-5 years of a car's life. The great thing about this coverage, is that if the car ends up as a total loss, the insurance company will pay the difference between fair market value and what you owe the lender, eliminating the excess amount due to the lender. Just a recommendation. Any questions, email me sjinsurance@gmail.com Thanks Sean

2004-12-23 16:33:52
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