<prompt> Human: I was in a car crash a few days ago. While it has not been declared totaled just yet, I am fairly certain it will be since air bags deployed and the frame is fucked. As such Im trying to at least get a game plan going if it is declared total. So quick run down of my finances:Savings: 2,500Loan payment left: 6,800Yearly income: 38,000Car value: Approx 8000Monthly Payment I can afford: 1200-1400 Ive been dropping 1000 into my current loan to pay it down faster.My car started at 37000 miles and is now at about 68000 in a little over three years. I do a fair bit of driving, and live about 20 miles from work. I will be going from California to Colorado anywhere from October - February. Boyfriend lives about 5 miles from work so I can use him to buy some time. However I can not live with him due to military dorm restrictions. My military enlistment is up in January, and I am not 100 on reenlisting, so there may be a grey area between end of contract and new job. I was funneling as much money as I could into current loan to pay it off prior to the end of my contract so I wouldnt have to worry about it. However, the need for an additional vehicle complicates this. So the questions I have are:Would it be better to use the insurance payment to pay off the loan? Can I do that legally? Or do I have to drop it down on a new car? What pricing should I look for in a new car? Would finding a cheap lease and saving some cash be more effective? Any additional suggestions would be appreciated as well! Thank you all in advanced.  <response>: Take insurance payment and pay off existing loan. Use excess amount for down payment on new car with a new loan. This is very common and be thankful youre not upside down on current loan. 