WHAT HAPPENS IF I OWE MORE THAN THE INSURANCE WANTS TO GIVE ME?
2007-03-05 12:32:20 · 5 answers · asked by nicole b 1 in Cars & Transportation ➔ Insurance & Registration
Hopefully, you got GAP insurance when you got your loan. GAP insurance pays off the difference to what you get for it and what you actually owe.
Most lenders require it as it protects their interests as well as yours. Some offer it but don't require it.
If you had GAP insurance, you need to call your lender and let them know and they will file the proper forms for it.
If unsure if you had it, look at your paperwork to see if it's listed, or call and ask if you can't find your paperwork.
If you didn't have GAP insurance, you are responsible for the difference, and will either have to keep paying on it, or roll the balance over to your next vehicle and the new lender will pay the balance on your previous car.
2007-03-05 13:22:17 · answer #1 · answered by Mark B 6 · 0⤊ 0⤋
Decline the offer.
However they are only really required to pay you an amount resonable to get a same vehicle of similar "like and kind"
So if you owe $19,000 on a car you can go to any dealer and buy for $10,000 then you are likely going to be out of luck for the other amount. Unless of course you claim other damages like time off work, medical or stuff like that.
To cover the loan amount that is on your car, you need to get something called GAP coverage. That would have filled in the difference between insurance settlements and the loan value.
2007-03-05 22:27:17 · answer #2 · answered by Anonymous · 0⤊ 1⤋
You owe the difference. It may be because the loan is more than the car is worth. (Welcome to the world of interest.) It may be the condition of car or the mileage too.
2007-03-05 20:38:37 · answer #3 · answered by freedismemberment 2 · 1⤊ 0⤋
You have to pay the difference. It's not their fault that you made a bad deal.
2007-03-05 21:13:21 · answer #4 · answered by Anonymous · 0⤊ 0⤋
You pay the difference.
2007-03-05 21:08:41 · answer #5 · answered by bundysmom 6 · 0⤊ 0⤋