Insurance... it's not good news for the sitch you described. My sister has had personal experience with the same circumstance. When they total out the car, it is for the blue book value for the make and year. You still have to pay on the loan even though you don't have the car to show for it.
When they haul it away (they are paying you for your totaled hunk of junk--which they typically sell for salvage), they cut a check to the insured for that amount. You are responsible for the old debt as well as the procurement of a new vehicle.
It stinks.
I hope this helps.
Betsey
"There are only 2 ways to live your life. One is as though nothing is a miracle. The other is as though everything is a miracle."
