What to Do When a Financed Car is Totaled?

1 Answers
DelGemma
07/30/25 2:56am
If the car is involved in an accident and you have vehicle damage insurance, you can claim compensation from the insurance company and then repay the loan company. You can use the compensation money from the totaled car to repay the loan, and cover any remaining shortfall yourself. You need to go to the local police station to complete the vehicle scrapping registration, which serves as evidence for the insurance company to process your claim and provide compensation. Alternatively, you can choose not to scrap the car and opt for repairs instead. In this case, negotiate the total repair cost with your insurance company.
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