new vehicle and was involved in a accident
new vehicle and was involved in a accident
I purchased a new vehicle and was involved in a accident……?—By arollainio
I purchased a new vehicle and was involved in a accident……on the initial contract i also purchase G.A.P. coverage for the vehicle… i had a estimate of $16,846 for the cars damage (which was considered a total loss). My insurance company wanted to settle quickly and payed the bank for about $10,000+.Leaving me only with $6,000. I have had this car for about 4 years paying over $28,000… is it possible to still obtain the difference for paying the loan off from G.A.P.? Or am i S.O.O.L.?
Best Answer —By Fred C
GAP insurance is not replacement cost coverage, it is coverage to pay off any balance left on the loan after the cash value payout to the bank. It also is not meant to repay interest paid on your loan.
In other words, if you had owed $10,000, and the insurance paid $8,000. GAP would have covered the outstanding $2,000.
Insurance payouts are ACV, which means actual cash value at the time of the loss, the approximate amount you could have sold the used vehicle for just before the accident.
So, if I understand correctly, the insurance company paid the bank the $10,000 loan balance, AND paid you $6,000. Since they judged the value of the vehicle as higher than the loan amount, there is no GAP to be covered.
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Comment by
Danieltba on 22 January 2010:
The purpose of GAP insurance is to pay the difference between the amount the Insurance Company has allowed for the vehicle and what is left owing.
If you have already paid the car off, then the GAP insurance will not really do you any good. It is only for the difference between the value of the car and the financed amount.
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Comment by
StephenWeinstein on 22 January 2010:
G.A.P. does not reimburse you for what you already paid on the loan. It only pays for what it still needed to pay off whatever is still owed on the loan.
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