0
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.
Still curious? Ask our experts.
Chat with our AI personalities
Lao
Rene
ProfessorAdd your answer:
Earn +20 pts
Does gap insurance still apply if your car is paid off?
It will depend on the type of gap insurance you have. Finance gap insurance would expire as there is no finance to cover but return to invoice and vehicle replacement would still carry on until the end of the policy or a claim is made.
Will gap insurance covers repossession in the state of FL?
Gap insurance will not cover repossession in any state or territory of the US. Repossession is not a valid claim for insurance. In fact, it is possible your insurance could be cancelled as a result of the repossession, making you high risk.
How much is it to purchase gap insurance?
If you are a UK resident, a Gap Insurance policy can start from just £55 - it really depends on what type of GAP Insurance you need, the period of cover and the claim limit required. Visit the related link for more details and market leading policies.
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.
Is there a time frame that you can make a claim on gap insurance?
Every insurance policy has what is called a claims tail, its like a statue of limitations, I would make the claim without regard to how long ago it was, and a good reason for doing so is that you had no idea that you would need to use gap coverage and you just found out.
What if GAP insurance was not offered Can I sue the dealership?
No the dealership can not be sued if they did not offer GAP insurance. The dealership is not required to offer GAP insurance.
How do you find out If you have gap insurance?
By looking at any GAP Insurance Policy you purchased and looking at the dates to see if it is in effect. If you bought GAP Insurance, you would have been given a copy of the bogus GAP insurance Policy.
Do you still have to make a car payment while you wait for your gap insurance to pay on an auto claim?
You don't have to, but they may take the car back.
Bridge the Gap with Short Term Medical Insurance?
Short term insurance is valuable to those venturing out on their own. Once someone has graduated college or left their parents, a short term plan is needed to bridge the gap. Most short term insurance plans only cover for periods of about 30 to 180 days. They can sometimes be renewed, but usually not for more than a year. While on a short term plan, it is important to seek out a full time medical plan for the future. Once your short term health insurance plan ends, so does all your medical coverage. You will need to have complete medical insurance once that happens.
How do you contact gap insurance?
Gap insurance is not the name of a company, it is a type of auto insurance related to leasing vehicles.
How can I ensure I have health insurance coverage during the gap between jobs?
You can ensure you have health insurance coverage during the gap between jobs by exploring options such as COBRA, purchasing a short-term health insurance plan, or enrolling in a marketplace plan through the Affordable Care Act.
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.
