I just got in an accident and I think my car will be totalled. I'm expecting to get a claim's check, however I thought about keeping $2000.00 or so for a down payment and having my GAP insurance take care of the rest, can I do that? Any one have experience in this arena? This is the first time I ever had a new car get totalled.
2007-04-07 10:49:13 · 9 answers · asked by bunka24 2 in Cars & Transportation ➔ Insurance & Registration
IF your car is totaled, the insurance company pays the actual cash value of the car. This amount may or may not be enough to satisfy your loan. If it's not enough to pay your loan, the ENTIRE CHECK goes to the lienholder. The lienholder rights trump yours. GAP will pay the difference b/w what you owe and what was paid from the insurance less any late payments and fees associated with your account, such as NSF fees, late payment fees, etc.
2007-04-07 18:08:41 · answer #1 · answered by bundysmom 6 · 0⤊ 0⤋
GAP insurance will make up the difference if you owe more on the car than it's worth. Example: You buy a brand new car from a dealer for $15k. A year later it is totalled. The insurance company says it's worth $12k, but you still owe $14k. The GAP insurance covers the $2k difference between the check from the claim, and the total you owe. Some GAP insurance will even give you some money for a down payment on another car since you no longer have a trade in.
2007-04-07 10:58:29 · answer #2 · answered by Joe Carviola 2 · 0⤊ 0⤋
You have to purchase the new car. Gap insurance may or may not protect you fully. In your case, hopefully you didn't put a huge down payment, because the insurance company pays out based on a used car, and gap insurance covers a difference between what you owe, and what the pay out would otherwise be.
2016-04-01 02:38:47 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Your insurance company should not be giving you a check, they should be giving it to the legal owner of the car, which is the bank. After the bank gets the payoff for the car, they will send you a bill for the remainder. At that point, you will have to submit that to the GAP insurance company for them to pay. If the check is directly issued to you, and not to the bank, then you will need to give the entire amount to the bank, and then proceed with the GAP coverage. GAP will require proof that you submitted the entire check. Now, if you end up getting a settlement from the insurance company that is higher than the amount owed on the vehicle, you may keep the additional. WARNING- If you do not submit the FULL amount of the check to the bank, and then try to claim GAP that is called insurance fraud!!!
2007-04-07 18:30:41 · answer #4 · answered by buttrfly52 4 · 0⤊ 0⤋
haha no, you cant just "keep some". All gap insurance does is pays off the amount that your insurance settlement doesnt pay off. Therefore.. you will be left with no loan at all and you can start fresh. I repeat.. NO.. gap insurance DOES NOT give you any money for a down payment.. it simply pays off how much more you owed then your car was worth.
2007-04-07 13:59:12 · answer #5 · answered by Anonymous · 0⤊ 0⤋
The only way you'll end up with extra cash is if the insurance money is more than enough to cover what you owe on your loan. However, if you were upside down on your loan, GAP comes in to pay the remainder of your loan after insurance has paid. You get no cash.
2007-04-07 12:59:19 · answer #6 · answered by Anonymous · 0⤊ 0⤋
You can't keep any part of what you get. It goes to the finance company. If there is any left after that, your GAP insurance then covers that. Keeping money not yours would be be stealing.
2007-04-07 11:12:14 · answer #7 · answered by oklatom 7 · 0⤊ 0⤋
you got a deductible to pay and you have the loan or bank to pay and if you are lucky you might get to kepp some of what you paid down ---- the insurance company will tell you the rules and you should be asking them as you do not tell us what state you live in or where you bought the car...
2007-04-07 12:42:56 · answer #8 · answered by XTX 7 · 0⤊ 0⤋
as far as i know they pay the whole car off. if you owed like 12000.00 then they pay that.
2007-04-07 10:56:14 · answer #9 · answered by tomendez1 2 · 0⤊ 2⤋