Yes. The insurance policy is a contract. All it requires the insurance company to do is to pay the fair market value of the vehicle. You would need to get what is called gap insurance to pay the difference between the market value and the loan value.
It depends. if you have GAP insurance, the insurance company will pay the payoff amount. If you do not have GAP insurance, it is the holder of loan's responsibility to pay off the complete open loan regardless of the amount paid by the insurance company.
Yes, if your insurance company will not pay it all.
Typically you need a car with insurance to get a title loan. If your car is totaled, the loan company are entitled to that money since they hold the title for your car.
If a car with an outstanding lien gets "totaled" in an accident the insurance company will pay the finance company. Any amount left on the loan after the insurance payment must be paid by the owner of the car. Gap insurance purchased at the time of the loan will pay any deficiency.On the other hand, any amount left over after the loan has been paid will go to the car owner.If a car with an outstanding lien gets "totaled" in an accident the insurance company will pay the finance company. Any amount left on the loan after the insurance payment must be paid by the owner of the car. Gap insurance purchased at the time of the loan will pay any deficiency.On the other hand, any amount left over after the loan has been paid will go to the car owner.If a car with an outstanding lien gets "totaled" in an accident the insurance company will pay the finance company. Any amount left on the loan after the insurance payment must be paid by the owner of the car. Gap insurance purchased at the time of the loan will pay any deficiency.On the other hand, any amount left over after the loan has been paid will go to the car owner.If a car with an outstanding lien gets "totaled" in an accident the insurance company will pay the finance company. Any amount left on the loan after the insurance payment must be paid by the owner of the car. Gap insurance purchased at the time of the loan will pay any deficiency.On the other hand, any amount left over after the loan has been paid will go to the car owner.
Loan company gets paid first if you owe more then the insurancwe pays you owe the balance, if insurance pays more then loan you get the differance.
What is Illinois gap car insurance? Is insurance you can purchase to cover the gap between the cost of repaying your car loan and the amount the insurance company will actually give you for your totaled car.
you still owe on the motorcycle. that's why banks require full coverage at the time of the loan-so that they will get their money. Since there is no insurance company, YOU are responsible for paying off the loan.
if you have gico then no but any other car insurance will yes
The purpose of gap insurance on an automobile loan is to pay off the portion of the loan that wasn't paid by your auto insurance company. If you the insurance company pays off the entire loan, there isn't a trigger to activate the gap policy and there isn't an amount to pay since it only pays the difference. Example: You buy a brand new car for $20,000. You drive off the lot and now the car is worth $17,000. If you have a covered loss and it is determined that the auto is totaled, the insurance company pays to the loss payee (loan company/lien holder) $17,000 because that is what the car is worth now. The gap policy would pay the additional $3,000 and pay off the loan. If you didn't have gap insurance, you would stay have to pay off the $3,000 even if the car was totaled out.
If they gave you 16000 on the car, you would not need gap insurance since your loan amount is 12400.
No, the finance company would simply refund any monies they charged you for forced placed insurance and your primary insurance company would be responsible for footing the bill.
The insurance company would not be interested in repossessing a car that has been completely demolished. The insurance company will pay over any damages to the loan company since it has a lien on the car. You would receive any amount remaining after payment of the car loan. On the other hand, you will be responsible for any remaining balance owed on the car loan. That is why "gap insurance" is important for a financed car. Gap insurance pays when the amount of compensation received from a total loss does not fully cover the amount the insured owes on the vehicle's financing.