Totaling a car...

[Stradbrother]

Hey everyone.

Unfortunately, last week my main car (when the Festiva is out of commission), ended up getting totaled when a driver hit it while it was parked.

It was totaled and I will be receiving just enough money to pay off my loan.

Could I possibly use the check I get from the insurance company to NOT pay off my loan, but to buy another car with cash (to avoid another car loan and to avoid a credit check because I'm looking to buy a house this summer)

Or would I have to use that money to pay off my car no matter what?

Thanks, pros.

[firebush357]

Depends on what kind of loan and what kind of insurance company you have. I'm pretty sure that most of the time they will send the check directly to the bank that holds the loan instead of handing you a check. My guess would be that they would cut 2 different checks if it happens to be higher than you owe and just give you what is left.