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NO. GAP covers the GAP left (if any) of what someone owes and the current market value of the vehicle should the loan balance exceed market value. In other words, you owe $16,000 on a vehicle and your car's only worth $13,000, YOU will be held repsonsible for the remaining $3,000. If you have GAP, it will pay the remaining $3,000 and you will be left with nothing but you also will owe nothing. Sale and loan contracts are legally binding and once signed that loan MUST be repaid. If such contracts weren't legally binding dealerships wouldn't be in business.

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Q: Will GAP insurance cover the full amount of a vehicle if the insurance coverage on a vehicle has lapsed and it is totaled?
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If a new car was purchased and driven for two months and then hit by a vehicle who was at fault what should a fair settlement be if the car is not totaled?

The amount of the repair bill. You might also get a rental car if you have that coverage on your own insurance.

What value should your car be to drop full coverage insurance to just liability?

Usually if the vehicle is over 10 years old and worth less than $3500. However, the value is a personal preference. If you have a $3500 car and it was totaled with no comprehensive or collsion coverage, could you afford to replace that vehicle without insurance reimbursement? So the dollar amount is your own risk.

How long does it take to get insurance money for a stolen car and the car was found?

You will get the car back and plus they will give you the money to repair all damages on the vehicle. You will not get a check for the full amount of the car unless its totaled. You must have comprehensive in order to have coverage on a vehicle that has been stolen.

Does having full coverage auto insurance in MI mean if my car is totaled and I wasn't at fault the car will be paid off?

Firstly, there is no such thing as full coverage auto insurance. This is just a term that developed over time to mean whether or not you wanted physical damage coverage on your vehicle or not. Secondly, if you have physical damage coverage this has nothing to do with what you owe on your vehicle. the physical damage section of an auto policy says that the insurance company has the option to repair, replace, or pay the actual cash value of your vehicle. I suggest if you purchase a new vehicle to consult your agent about GAP coverage which will pay the difference between the ACV of your vehicle and the amount owed. Never purchase this from the dealer and it will cost you several times what you can get it from your insurance company for.

If you are involved in a collision and your policy is only 10.000 but the other vehicle is totaled is the insurance company responsible for the amount over the policy?


What does the car insurance do after they totaled the car?

According to most auto insurance policies, the company will repair, replace, or pay the actual cash value of the vehicle insurance if you have the appropriate coverage. If the vehicle is deemed a total loss, which means that the cost to repair is close or over the actual cash value of the vehicle, the company will pay the value of the vehicle to your finance company or bank if it is financed, and will pay you any amount over the amount owed to the bank or finance company, if it is financed. At this point you have in effect, sold them the vehicle so they will take what is left of the car.

If you are in a car accident and the car is totaled does your car loan get paid off through insurance?

Not unless you have the new option in insurance of the new car replacement. If your car is totaled, you will be paid the Blue Book price for your vehicle. This sum is the amount your vehicle is worth at this time. Any amount over this sum that is still owed to a car loan is still due.

Will at fault insurance buy you a new car after paying your car totaled?

No. They will give you the money for the value of the vehicle and then you are on your own. However, check with your state's Department of Insurance. You might have recourse against the insurance company if you are unable to find a comparable vehicle with the amount they gave you.

What term refers to the amount you or your employer pays in exchange for insurance coverage?

The premium is the dollar amount paid in exchange for insurance coverage.

Get An Auto Insurance Quote For A Modified Vehicle?

If you modify your vehicle in any way, you may need additional car insurance to protect it. Vehicle modifications are partially covered through the comprehensive insurance coverage of many policies. As much as $1,000 worth of damages can be paid for by this coverage, but anything over that amount needs a separate form of protection known as custom parts and equipment coverage. Ask about this coverage or select the necessary option when buying car insurance online to find accurate insurance quotes that will keep your modified vehicle protected. It's a smart way to fully protect your prized automobile.

What is liability coverage on auto insurance?

This means that if the accident was your fault, your insurance will pay(up to an amount that is on your policy) for the other property and persons involved in the accident. Liability insurance does NOT cover your vehicle damage.

What is Coverage A in insurance?

Coverage A is the dwelling amount. As in, if it cost $250K to rebuild your house then that is what your coverage A should be.