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Who Is Responsible for the Balance of a Car Loan?
Jan 15, 2018

The borrower is responsible for the balance of the loan, even if the vehicle is stolen or damaged beyond repair. If your claim payment is less than the loan balance, the lender will expect you to pay the difference. Coverage commonly referred to as “gap” insurance can usually be purchased to protect against this situation.

https://www.insurance.ca.gov/01-consumers/105-type/95-guides/01-auto/hadaccident.cfm

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