GAP insurance?

Question

ok, I'm wondering how excatly how GAP insurance works. If anybody can help me out with this it would be greatlly appericated.

ok I was in an accident an I'm sure they will say it's totaled. So it's worth $6,915 per kelly blue book an I owe about $10,000 on it, so the GAP would cover the $3,000 difference????

Answer 1

Say you owe more on your car than it's blue book value (happens with zero down loans). You have a wreck. The insurance pays you the value of the car, but you still owe the finance company for the remainder of the loan. Gap insurance pays off the loan for you.

Answer 2

GAP insurance is what covers the difference between the balance on your car lease and what your car is worth after an accident and depreciation.
Some years ago, before GAP insurance, if you got your new lease car totaled, you could be libel for thousands because the insurance did not cover the depreciation.
Basically it covers your "drive off" depreciation that your regular insurance does not cover.

Answer 3

GAP insurance pays for the gap between what the car is worth and what you owe.

So, yes, if you had this and your car is worth less than you owe, your insurance would pay off your loan.

It's a worthy investment if you buy a new car with little money down. Best of luck to you!

Answer 4

GAP covers the difference between the Actual Cash Value of your vehicle and your loan balance less any late payments and late charges.

Answer 5

Pretty much, you purchase the insurance when you get the policy, not after the wreck. The gap coverage must be written in the policy.

Answer 6

You first need to carry an additional insurance then if anything happens to your vehicle it would be insured 100% you will be reimbursed on a badly wrecked vehicle or if your car was stolen or burned they will give you the fair market value of the vehicle.