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What if you get in a wreck but have failed to pay the insurance the past month the car is new and has gap insurance but the insurance is inactive because of failure to pay?
Your Not covered for anything at all. If the auto insurance is inactive, then so is the GAP coverage. "GAP Insurance" is Not "Auto Insurance", it is Finance Company Insurance. it will only pay the difference after your required Auto Insurance policy has paid it's maximum limits. If your auto insurance lapsed, then your GAP insurance has also lapsed automatically and concurrently. The GAP Insurance is Void in the absense of an auto insurance policy. Your on the hook for all monies owed to all parties involved with your finance note. Take Care
What if my car was totaled in an accident the insurance pay off the debt?
Only if you carried GAP insurance will it pay off what you owe to the Lienholder. If not then they will only pay what they valued your car to be worth which may or may not be enough to pay off the loan.
Does gap insurance on you car expire?
GAP insurance helps cover the difference if your car is deemed a total loss and is worth less than what you owe on the loan. GAP insurance only runs out when you pay down your loan enough that you have equity in the vehicle.
Will gap insurance pay anything if you owe less than the cars worth?
No it will not pay anything in that case. GAP only covers the difference if the value is less than amount owed.
Will you have to pay your excess if your car is a total loss?
Yes. Its called the gap. Get Gap insurance.
If you total your car after your insurance is canceled will GAP insurance still protect you?
NO,, GAP Insurance is supposed to pay the difference between what your Auto Policy paid and any remaining portion of your loss after the Auto Insurance Policy has paid it's maximum. If No Auto Insurance Policy is in Place providing comprehensive and collision coverage then your GAP Policy is Null and Void. GAP coverage only pays in conjunction with your Auto Insurance Policy. No Auto Insurance! No Gap Payment
Does GAP insurance help pay an accident damage cost?
NO
What does gap cover?
GAP insurance will pay the difference between what your car is worth and what is owed on the loan.
Who pays remainder of loan when car is totaled?
It depends. if you have GAP insurance, the insurance company will pay the payoff amount. If you do not have GAP insurance, it is the holder of loan's responsibility to pay off the complete open loan regardless of the amount paid by the insurance company.
Does gap insurance cover if your behind on car payments?
Unfortunately, no. What gap coverage does is pay the balance on your car loan if your car is totaled and the insurance payment is not enough to pay off the balance of your loan. Quite often our vehicles depreciate faster than we can pay them off. Insurance only pays the depreciated (blue book) value, so sometimes what you will get from your insusrance company doesn't pay off the loan.
If you have Gap insurance on your loan for your vechicle do you need to still have comp and collision or can you just insure yourself?
GAP insurance only covers the difference between what your car is worth and what you owe. So if your car is only worth $8,000 and the balance on the loan is $10,000, GAP insurance will only pay the $2,000 if your vehicle is determined to be a total loss by the insurance company. You still need to have physical damage coverage (Collision and Comprehensive) for the vehicle. If you don't, your finance company will get their own coverage. It's called forced placed insurance. Your finance company will charge you for it, you will not get any benefits from it, and it will cost you more money than if you insured it yourself. You should also find out how much your GAP insurance covers. Some cover up to 150 percent of the value of your car, some only cover 115. Using the same numbers; if your vehicle is only worth $8,000 and your policy only covers up to 115 percent of the value, GAP insurance would only pay $1,200 and you would have to pay the remaining $800.
What is Gap car insurance?
If you don't own your car, but are leasing or making payments, gap insurance protects your vehicle lease or loan. It will also pay your regular insurance deductible in the event of loss.
