I live in ontario canada, i have an 01 sunfire with atlleast $5000 damage.? -

my insurance is debating wether or not to write it off. will they pay off my existing loan completely. i owe more than it is worth or will i be stuck paying the difference? i have full insurance because the car is not paid for Your insurance will only pay the actual cash value of your vehicle. The amount you borrowed does not alter the terms of the settlement. Coverage is available to cover the gap between the value of the car and the loan outstanding but it is only sold in connection with new car purchases. You will need to read your insurance contract to see if you have gap insurance to cover the difference in the value of the vehicle and the amount owed on the loan. If you did not purchase it through your insurance company when your car was brand new, you might have purchased it through your lender. Call your lender and find out. If you don't have any coverage, then yes, you will still owe the bank the difference between what is owed, and what the salvage value is determined to be. No. When they pay off the value of the car, they pay off the value of the CAR. They don't pay off your loan!! Yes, you'll be stuck paying the difference, unless you bought "gap" coverage. Even if you DID buy "gap" coverage, you still have to pay off any negative equity from a prior loan, or late fees associated with THIS loan. They will pay the lien hold the Actual Cash Value of the vehicle. If you owe more than the car is worth, you will have to pay that, or roll it over into another loan.