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2007-05-17 06:56:38
2007-05-17 06:56:38

No because GAP covers any GAP between what you owe on the car and the cars actual market value if the should your loan balance happen to exceed what your car is actually worth. If you owe $16,000 on a car but you owe 18,000, GAP would kick in and pay the remaining 2,000. You would still end up with zero dollars, but you also don't have to worry about paying off a loan on a car you no longer own.

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Related Questions


An insurance company declares a vehicle totaled when the cost to fix the vehicle exceeds 70% or more of its market value.


What. Why would you think this is required? An insurance company will not find you a new vehicle is your is totaled, they will pay you the actual cash value of the vehicle you had.


can be done by insurance company at time it is totaled out by them


Your personal auto coverage will not cover their vehicles. What they are probably asking for is to make sure you have coverage in case you drive your vehicle on errands or such for the company. If you go to the post office to get the company mail your personal auto insurance will be the primary insurance and then if they have an endorsement to their insurance called "hired and non-owned auto" it will provide secondary coverage over and above your coverage to protect them in case of an accident. Their coverage insists that you as the employee have primary insurance on your vehicle. Also note that the company insurance will not pay for damage to your vehicle.


When a vehicle covered by insurance gets wrecked, the insurance company looks at how much it will cost to repair. If repairing the bike costs more than it is worth, then the insurance company declares it totaled and pays for a replacement.


most time if the car was in an accident and is totaled you will have to by it back from your insurance company


There's a good chance the insurance company will deny the claim of the person with the uninsured vehicle, as that vehicle isn't supposed to be on the roadway to begin with.


A vehicle is totaled if it cost too much to repair it. Usually, insurance companies determine whether or not a vehicle is totaled.


Legally, if the company pays you for the totaled vehicle, it belongs to them. You can offer (if they don't) to by the scraps back. This would be deducted from your settlement and you would be paid the difference.


Firstly, there is no such thing as full coverage auto insurance. This is just a term that developed over time to mean whether or not you wanted physical damage coverage on your vehicle or not. Secondly, if you have physical damage coverage this has nothing to do with what you owe on your vehicle. the physical damage section of an auto policy says that the insurance company has the option to repair, replace, or pay the actual cash value of your vehicle. I suggest if you purchase a new vehicle to consult your agent about GAP coverage which will pay the difference between the ACV of your vehicle and the amount owed. Never purchase this from the dealer and it will cost you several times what you can get it from your insurance company for.


It just depends on whether or not the insurance company considers the vehicle worth repairing or not.


Either the cars owner or the insurance company who paid for the totaled vehicle


If your serious go ask your insurance company


The companies insurance will protect them from being sued but not you.


If she was driving your vehicle, with your premission, it would fall under your insurance and they would have to pay for the other drivers vehicle


In some cases you can buy your car back from the insurance company or from the scrapyard if the vehicle is totaled. You will need to check your insurance policy to see what type of stance they take on this purchase.


If the accident is your fault, your insurance company is not going to pay out anything. If it is the other person's fault, the other insurance company will be liable.


Once a car is totaled it is gone. Usually the insurance company takes the car for them to sell and get some extra money and if it is claimed as a totaled vehicle I would not recommend driving it on the street where you can hurt yourself or someone else.


Yes, That's how it works. The insurance company sells you coverage in the form of an insurance policy and you pay a premium in exchange for that coverage. If you don't pay for the coverage then your not covered.


No, you are misstating what GAP coverage is. GAP insurance is a separate type of insurance that you can purchase as part of your finance agreement or on your personal auto insurance. What GAP does is pay the difference in what your insurance company pays and what is actually owed on the finance account for the vehicle. This is especially important when a vehicle is newer. An auto insurance policy pays either the cost of repair, replacement of the vehicle, or actual cash value of the vehicle at the insurance companies option. If the vehicle is totaled they pay ACV which on a fairly new vehicle is less than the purchase price. Purchasing GAP insurance is usually far less expensive when purchased from your insurance company than the finance company.


If the damage to a vehicle will cost more to repair than the value of the vehicle before the accident, an insurance company will "total" the vehicle. That means they will pay you what the car was worth before the wreck. At that point the insurance company owns the wreck, not you. You have nothing left to insure, therefore.


The insurance follows the vehicle so your own insurance company would be primary. However, if you don't carry the comprehensive coverage on your own policy and your friend has a vehicle with comprehensive coverage, his coverage would be secondary and pay for the damages.


Whomever the car is titled to. You will have to sign the title over to the insurance company since they essentially bought the wrecked car from you.


Some insurance companies like Progressive will cover a non-owned vehicle meaning a vehicle in which you have no legal or financial interest. Check around if your insurance company does not provide coverage to non-owned vehicles.


You may be, do you have a policy on a vehicle that has collision coverage? If so it may step in, check with your company turn in the claim. If no policy then the owner of the vehicle could sue of course, then will be a judge's opinion.



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