From what you have written you intentionally stopped paying on this loan and got another car.
They will eventually come and get the car, but if you think that is the end of it you are very mistaken. They will sell the vehicle at auction for about 25%-30% of Blue Book and you are still responsible for the deficiency balance, and have a repossession on your credit. If you do not pay the balance they probably will take you to court and sue you. Once they get a judgment depending on the state they can garnish your wages, attach your bank accounts, or even place another lien on your new car.
If you think 16.01 was a high interest rate just wait until you try and get another vehicle in a few years. With a repossession on your report, you will wish you could get one that good.
By the way on the insurance every finance company requires you to carry full coverage at minimum levels. This not only includes liability but comprehensive and collision. If you do not have those per the loan agreement you signed they are allowed to put "forced place" insurance on your loan.