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 Posted: Sun Jul 19, 2009 7:13 pm Post subject: Gap Insurance |
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| When I purchased my car, I rolled over another loan into my current loan and now my car is a total loss. Will the gap insurance pay the amount that I rolled over? |
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Talks
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| Posted: Sun Jul 19, 2009 7:29 pm Post subject: |
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No Gap insurance will not pay for your amount u rolled into your present/current loan from previous loan.
Generally, GAP fills gap between Actual value of car and balance of loan. So just the car you drive is covered and not the other party accidental car.
Also GAP Would cover all items you financed while making the purchase on of your vehicle… So a good advice is always purchase accessories at time of purchase and put it on loan rather than making a purchase months later.
| Quote: | Notable general GAP exclusions include:
-- Overdue lease/loan payments
-- Financial penalties imposed under a lease for excessive use
-- Security deposits not refunded by the lessor
-- Costs for extended warranties, credit life insurance, or other insurance purchased with the loan or lease
-- Amounts deducted by the primary insurer for wear and tear, prior damage, towing, and storage
-- Carry-over balances from previous loans or leases
-- Equipment added to the car by the buyer, meaning that only factory-installed equipment is covered |
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DV360
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| Posted: Mon Jul 20, 2009 2:58 am Post subject: |
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| GAP means Guranteed auto protection and if that is true than what you are expecting is true but there are certain exclusion as have been posted by fellow bloggers. On the face of it it does not seem that your insurer will cover you for the roller over amount |
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Neetalia
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| Posted: Mon Jul 20, 2009 11:49 am Post subject: |
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| Quote: | | Will the gap insurance pay the amount that I rolled over? |
It depends strictly on the specific policy you have. When was your wreck? When was it deemed a total loss?
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Lori
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| Posted: Mon Jul 20, 2009 5:01 pm Post subject: |
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A lot of it actually also depends on the way that the bill of sale and paperwork was done at the dealership. If they simply raised the price of the vehicle, or played another numbers game...you may not have anything to worry about. Gap will pay the difference between the loan amount and the value of the vehicle as other people stated.
Good Luck! |
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ChrisBantly
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| Posted: Tue Jul 21, 2009 4:16 am Post subject: |
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| Quote: | | Will the gap insurance pay the amount that I rolled over? |
Talk, I've to agree with both the posters above me. It'd depend upon the particular policy.
Normally, the Gap insurance carrier would exclude any amount over and above the actual loan on the car. Now, if your policy has the same clause in it, then you might not get the rolled over amount covered by the gap policy.
Is it possible for you to check the policy terms? Have you already received the check for the totalled value of the car?
~ Jeremy |
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JeremyHolter
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| Posted: Tue Aug 11, 2009 2:33 am Post subject: Rollover |
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The GAP should cover the entire leftover amount of the loan...minus any outstanding payments or late fees. My car was just totaled out and my GAP is paying off the loan including the 500 deductible that my regular insurance took off of my payout.
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Melissa
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| Posted: Wed Aug 12, 2009 1:37 am Post subject: |
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I had 2 relatively new vehicles several years ago, my husband died suddenly, and we didn't have life insurance on the vehicles (we were young and dumb). I made payments for another year, and then traded both vehicles off on a new Yukon. All of the cars in question were financed through GMAC by the way.
When I purchased the Yukon, the finance people explained to me that since both of the other loans were upside-down, I had to get a vehicle that was worth enough to get the Yukon AND pay off the other two vehicles.
Therefore, technically, my other vehicles were paid off, although I paid a ton for the Yukon. To make a long story short, my GAP insurance would cover the entire balance of the loan if the vehicle was totalled.
Good luck to you! |
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mswatson27
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| Posted: Wed Aug 12, 2009 4:03 am Post subject: |
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Hello Mswatson,
I guess your new financier just merged the other two loans into the new one by increasing the cost of the car. Well, in such cases the Gap would cover the balance of the loan. But most often Gap insurance wouldn't pay for the amount that you'd rolled over from another loan. If your car gets totalled, you'd be responsible for the amount that you have attached.
IMO everytime you start with an auto loan upside down you should carefully choose the Gap coverage to avoid the nasty little surprises at the time of need.
~ Jeremy |
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JeremyHolter
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| Posted: Wed Aug 12, 2009 4:40 am Post subject: |
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| I agree with you Jeremy. There was no way I would have signed on the dotted line for that Yukon without GAP coverage!!! |
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mswatson27
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| Posted: Wed Aug 12, 2009 10:54 am Post subject: |
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Not ALL GAP policys will cover the rollover...some do...some do not...always check the wording of the contract.
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Lori
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| Posted: Wed Aug 12, 2009 12:15 pm Post subject: |
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| Here is a question. How do you know when you need GAP insurance? I recently bought a newer used vehicle with low miles. 2006 Pontiac G6 with only 21,000 miles. The purchase price with 5 year warrenty was roughly $13,000. I blue booked the car and it came in roughly that amount. (I paid some down and paid for the additional warrenty out of pocket). The dealer said I would not need GAP..is this true. It seemed right to me. |
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fireyone
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| Posted: Wed Aug 12, 2009 12:19 pm Post subject: |
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| Quote: | | How do you know when you need GAP insurance? |
If there is ANY way that you owe more than the vehicle is worth, you need GAP... | Quote: | | I blue booked the car |
Come on now Fire, you know that no carrier uses the blue book 
Without knowing all the option etc. on your car, I can't get a true value for you...but with only the mileage and yr/make (also I ran it as a 4 cyl, it comes as a 6 as well) I'm getting 11,975.00 so with the options etc...you're probably close...what did you finance?
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Lori
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| Posted: Wed Aug 12, 2009 12:27 pm Post subject: |
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| It is a 6 cylinder GT. Here are alot of the options I can think of. Electronic sunroof, six disc cd player with XM radio, Traction control, alloy wheels, electic windows and seats. Gosh I am trying to think of what all would matter. I know it came with so many options that I thought I was getting a good deal...now I am wondering. I financed $11,000. Paid for the warrenty and taxes all with cash. |
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fireyone
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| Posted: Wed Aug 12, 2009 1:02 pm Post subject: |
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Ok, I get $13, 400 with what you have provided, if it has leather seats add 450.00 without cruise deduct 150, with theft RECOVERY system add 125
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Life gaurantees a chance NOT a fair shake
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FIND a way EVERY day to lighten the load of another
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Lori
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