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if your car is worth 10k and u own 20k and your car gets totaled, your car insurance will cover 10k for what your car is worth and cap will cover the rest. you wont get any money but you also wont have any monthly payments anymore.
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∙ 11y ago
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Will you have to pay your excess if your car is a total loss?
Yes. Its called the gap. Get Gap insurance.
When is buying gap car insurance a good investment?
GAP insurance pays the value of the car minus liens applied to it and only pays in the event of a total loss. If you can get coverage that covers damage (as well as total loss), this would be better. If your liens are substantial in relation to the value of the car, then GAP insurance is not worth it.
What is meant by Texas gap car insurance?
GAP insurance stands for guaranteed auto protection. It covers the total amount you owe on your car in if it is totaled. Regular insurance only pays for the value of your car which can be a lot less then what you owe.
Does gap insurance on you car expire?
GAP insurance helps cover the difference if your car is deemed a total loss and is worth less than what you owe on the loan. GAP insurance only runs out when you pay down your loan enough that you have equity in the vehicle.
I had a wreck. Insurance wants to total the car. When I purchased the car I purchased GAP insurance. I filled Bankruptcy Chapter 13. Wondering will the GAP insurance cover balance of after insurance?
Yes, you have taken a smart and wise step. When your car will be totalled by the insurance company, than the balance amount of the loan which you will have to pay will be paid by the gap insurance. This is the purpose of gap insurance. Gap insurance pays for the difference in the insurance settlement and the loan amount when there is an accident or a misfortunate event that leads to a claim like theft of the vehicle. The purpose of insurance is to save a person from financial problems.
What does Gap insurance use for in Illinois?
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.
Does gap insurance cover a death?
No. If a car is determined to be a total loss as a result of a collision, GAP insurance pays the difference between what the collision coverage pays as the actual cash value of the car and the outstanding loan balance.
If you have gap insurance through both the car company and insurance company will you the insured be entitled to one of the payments to purchase a new car?
doubt it, gap insurance (usually sold by the car dealer or lien holder) covers just that the 'gap' between the acv (actual cash value-which is what the insurance company less your deductible if there is one, for your total loss vehicle) and pay off of your loan
What happens if your car is totaled and you are paid up on your insurance but not on your car loan will it be repossessed?
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.
Is California gap car insurance a good buy?
Gap insurance would be a good choice if you put less than 20% down on a new car. If something were to happen to your car shortly after the purchase, gap insurance will pay what you owe, not what the car is worth.
Who sells gap insurance?
GAP insurance is designed to cover the difference between what you owe on a financed (or leased) vehicle and the actual cash value that is paid by an insurer if the car is a total loss. Generally, GAP coverage is available through the car dealer or the finance company that finances the car.yes
Where can I learn more about gap car insurance?
Gap insurance is designed to give additional coverage so you are not stuck with a bill in case an accident happens in between. You can find out about this at http://www.carinsurance.com/kb/content19664.aspx
