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Yes you do. You need to have Collision and Comp coverage for Gap insurance to appy. Let's say that your vehicle is totalled out in a car accident and your loan is for $15000. Now lets say the insurance company offers you $10000. You would still owe the bank $5000 for your car so in this case, the Gap insurance will cover the other $5000 and pay off the loan in full once you submit all the paperwork they need to process the claim.
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Do you have to have full coverage for gap to pay?
Yes, you do. GAP coverage covers the difference between the value of the car and the amount owed. That means that you are making payments on the car, which is financed, which requires full coverage, insurance wise.
Do you need gap if you have full coverage?
Yes you do. You need to have Collision and Comp coverage for Gap insurance to appy. Let's say that your vehicle is totalled out in a car accident and your loan is for $15000. Now lets say the insurance company offers you $10000. You would still owe the bank $5000 for your car so in this case, the Gap insurance will cover the other $5000 and pay off the loan in full once you submit all the paperwork they need to process the claim.
How does one get PA gap car insurance in this state?
Look at your local insurance companies. Ask them if they offer gap car insurance. All states will have certain coverage included. You just need to ask.
Does gap insurance cover theft?
Yes, But only if there is a gap in the final loss payment by the underlying auto insurance policy. If there is no underlying Auto Insurance theft coverage then the Gap Policy is null and void and no coverage would ensue.
What is full coverage auto insurance requirements in California?
When a vehicle is financed, you must have comprehensive, collision, and liability or 'full coverage' to protect the bank. I am not sure what you mean by 'requirements' other than that. You can also buy "GAP" insurance, for if something happened and your car is totaled and you owe more that it is worth, the GAP will make will make up the difference
Do I Need Insurance When Leasing a Vehicle ?
If you lease a vehicle, you still need auto insurance. Leasing a vehicle can make perfect sense for many consumers, but most banks will require that you purchase full-coverage car insurance to cover any damages or liabilities that you might cause during the course of operating the leased vehicle.Insurance for a Leased VehicleFull coverage insurance is a term that is used to describe insurance that is above the minimum amounts that are required by your state. A full coverage insurance policy will cover the market value of the leased car if you experience a loss while you are driving, and this type of insurance will pay regardless of who causes the accident. Full coverage insurance includes comprehensive insurance coverage and collision insurance coverage as well as coverage to protect you from uninsured and underinsured motorists on the road. A full coverage policy is more expensive than a liability-only policy, since a liability-only policy will only cover damages to other drivers or to property; it does not cover any damage to your vehicle.Limits Required by Leasing BankYou should also check with the leasing bank to determine the limits that your full coverage policy will need to cover. More than likely, your leasing bank will require that you carry a higher limit than your state requires. An increased limit will protect you in the event that you are involved in a serious auto accident.Gap InsuranceIn addition to regular auto insurance, you may be required to purchase "gap" insurance when you lease a new car. While most leases will require that you carry full coverage insurance, including comprehensive and collision coverage, on a leased vehicle, many will also require the purchase of gap insurance. As the name implies, gap insurance is insurance that will pay for any gaps between what your insurance pays and what is owed on the lease if you experience a loss. Gap insurance is important because vehicles depreciate in value, and if you have a loss early on in your lease, you may find yourself owing more on your leased vehicle than the insurance company is willing to pay. Sometimes this gap insurance is bundled into the cost of your lease and you don't have to actually choose an insurer or add anything onto your insurance policy. When compared to the coverage that it provides, it is generally inexpensive and adds just a few dollars each month onto your lease payment.
When should a person consider purchasing gap insurance?
When the comprehensive coverage has a large gap in coverage. Typically if a medical policy has a large deductible, there s gap insurance available to cover that "gap". Also there is coverage available to cover the "donut hole" in the medicare part d pharmacy b
How do you see if you have gap coverage on your Kia?
Call your insurance agent.
Does gap insurance with CU-NA mutual covered fire loss on auto?
Gap insurance is not primary insurance coverage. You would have to have comprehensive insurance on the vehicle first. After comprehensive coverage pays the actual cash value of the vehicle if it is a total loss, then GAP would pay any difference in the ACV and the balance of the loan on the vehicle. GAP will not take the place of comprehensive insurance in this case. As a matter of full disclosure, I own and operate a small Independent Insurance Agency and have for the part 22 years. Before that I worked as an agent for a direct writer insurance company.
When purchasing a car if the owner already has full coverage on a trade in do the owner need gap insurance?
Firstly, talk with your insurance agent before signing for the new car. Dealers will sell you GAP coverage whether you need it or not and their GAP is a very expensive coverage that is paid up front and then financed so you pay even more. The only time you need GAP coverage is when the financed balance is more than the value of the car. If you are trading in another car you may have a lower balance than the book value or the new car. In any case you can purchase GAP from your agent and cancel it after a year or whenever you feel that the loan balance is lower than the value of the car. If you buy from a dealer you pay for the life of the loan plus interest.
If you total your car after your insurance is canceled will GAP insurance still protect you?
NO,, GAP Insurance is supposed to pay the difference between what your Auto Policy paid and any remaining portion of your loss after the Auto Insurance Policy has paid it's maximum. If No Auto Insurance Policy is in Place providing comprehensive and collision coverage then your GAP Policy is Null and Void. GAP coverage only pays in conjunction with your Auto Insurance Policy. No Auto Insurance! No Gap Payment
If an accident is your fault and your car is totaled do you receive any money for your car?
That depends on what insurance coverage you have. If you bought only the state-required liability, NO. If you have full coverage you will get the book value of the car minus your deductible. If you have a loan on the car, this will probably not pay it off and you will still owe the remainder unless you also purchased "gap" insurance. Gap insurance will cover the remainder of the loan except for the deductible.
