<prompt> Human: On May 18th, my car was declared a total, and my auto insurance requested from the car loan company, a total owed. Total owed was greater than my car insurance would pay, and Gap insurance would take on the remainder. As of today, June 28th, the car loan company has received and cleared my insurances check. But the Gap insurance company is still awaiting paper work to show the amount remaining, amount paid, etc. Until those are shown to the Gap insurance company, payment for remaining will not be paid. I received a call from car loan today, stating I am past due on my payment. I will be receiving a negative unpaid payment remark and calls will be made to me more often. As well as they asked for my employment status, and employer. My concerns: A. They just received a check for the car, and in this situation, how can they continue incurring further feesfunds?B. How can the Car loan company decide what the funds paid from the insurance go to? When I asked how the loan could be even remotely past due with a large sum paid to them. The customer representative stated the funds were against the principal. Beyond how shady this already sounds, at least to myself. I dont think they should have to wait the 5 years for funds, but if the process is ongoing, they shouldnt be raising extra funds while the amount they have currently exceeds several years worth of payments.C. On my end, I finally received the information to provide to the Gap Insurance Company and submitted the documents. But what other obstacles or hurdles might I come across?  <response>: The payoff would apply to the principal. Just make the payment and get refunded later. You are ultimately responsible for the loan installment separate from any gap insurance. Skipping the payment may negatively affect you credit score, so not worth fighting over when this will be resolved soon. 