What happens when a car crashes before paying off its EMI?

When your friend borrowed your car, a bailment was created. This would have been a “bailment for sole benefit of bailee”. read more

Well,your liability to pay the emi does not cease.Since your Car has crashed you can file a suitable claim with the insurance company for the damage.You can not disown your responsibility to pay the loan. read more

The very short answer to this question is: you are still legally obligated to make your monthly loan payments to the bank or financial lender until the loan is paid off. The fact that your car was a total loss does not change your loan repayment terms. Your legal obligation to repay the loan continues. read more