Gap insurance pays the difference between what your car is worth and how much you still owe on it when it’s totaled or stolen. Because new cars generally lose value faster than most people pay down a car loan, this coverage supplements a comprehensive or collision insurance payout, which ...
If you’re in an accident and your car is totaled, the insurance company’s payment — which is based on the cash value of the car — may not cover the full amount you still owe. (Gap insuranceis intended to cover this risk.) ...
If you’re a victim of auto theft or your vehicle is totaled while you’re upside-down, you will still be liable for paying the full balance of the loan. Any payments you receive from your car insurance frequently won't cover the total amount. Related: Why Are 72-Month and 84-Month ...
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Gap insurance: This pays for the outstanding loan amount on a financed vehicle if it is totaled or stolen before the loan or lease has been paid off. For example, if you still owe $11,000 on a car loan, but you only get $8,000 from your insurer based on current value, this type...
We will obviously still owe money on the car, and I probably will have to make payments on a car I can't drive either. Have you had some ray of light in this? Any advise will help!!! :mad: nofreelander Member Posts: 2 September 2007 Does anyoneknow about the class action ...
Sometimes referred to as an umbrella rider, gap insurance will pay the difference between the actual book value of your car, and the remaining balance on your car loan – if the amount that you owe on a car is higher than what the car is actually worth. The insurance company will pay ...
Your car is totaled. Following an accident, your insurance agency will pay out the value of your vehicle. If you have an upside-down loan, however, you will still owe that amount, along with any remaining negative equity. You wish to trade in your vehicle. If you want to trade in ...
Gap insurance on leases covers the difference between what your insurance company will pay for your vehicle and the amount that you still owe on it in the event that your car or truck is totaled in an accident or stolen and never recovered. Some banks automatically include gap incurance ...
the auto insurance company’sassessment of your car’s value. Almost invariably, the estimate comes in lower than you anticipated, and the amount you receive is not enough to purchase an apples-to-apples replacement. Sometimes, it is not even enough to cover what they still owe on the car...