This is a difficult position to be in. Because the insurance companies are only required to pay the replacement value (i.e. what the car crash victim’s totaled car was worth immediately before the crash), insurance companies are generally not responsible to pay off the car crash victim’s full loan when the loan balance is more than the replacement value of the car. However, some car crash victims maintain GAP coverage through their bank, which would cover the difference in the event the victim is “under water” on their loan. Additionally, the car crash victim can, in some circumstances, work with their bank to roll the remaining principal balance into a new loan when the victim purchases a new vehicle.