Totalled vehicle, and GAP insurance

by Guest » Thu Dec 10, 2009 12:14 pm
Guest

Hey there

my sister totalled her car a few days ago and the insurance settlement has not been set yet

but her loan is likely more than the insurance company is willing to cut for the ACV of the vehicle.

luckly she has gap insurance with her finance company so she can make a claim


my only concern is if she retains the salvage vehicle, the insurance company will deduct the salvage market value from the ACV check, and this will cause issues with the GAP insurance.

is it possible to buy the vehicle back in a seperate transaction and not have it deducted from the ACV check? and does it matter who retains the salvage title for the GAP insurance?

any help would be appreciated.

Total Comments: 5

Posted: Thu Dec 10, 2009 01:57 pm Post Subject:

my only concern is if she retains the salvage vehicle, the insurance company will deduct the salvage market value from the ACV check, and this will cause issues with the GAP insurance.

I sincerely doubt her lein holder will allow her to retain salvage. I've never seen a single lein holder allow this, unless she can pay off the vehicle...GAP will not pay a dime, if she retains salvage..

is it possible to buy the vehicle back in a seperate transaction and not have it deducted from the ACV check?

The only way you could accomplish this is to purchase the vehicle when it goes up at auction, just like anyone else that is bidding on it. Of course this depends on the manner in which her Vehicle insurance carrier handles their salvage. It may be that you'd need a dealers license to even bid on it..

and does it matter who retains the salvage title for the GAP insurance?

Yes, her GAP won't pay (at all) if she keeps the car...as I said, she may be able to buy it back a few weeks or months down the road, after her carrier has got the salvage title back in their name so they can sell it...

Posted: Thu Dec 10, 2009 06:06 pm Post Subject: gap

thanks so much

i searched the internet all yesterday and could not find any helpful information regarding the gap+retaining salvage.

Posted: Fri Dec 11, 2009 12:30 pm Post Subject:

could not find any helpful information regarding the gap+retaining salvage.

That's because you can't..(retain salvage and have GAP pay off note)

Posted: Fri Dec 11, 2009 07:28 pm Post Subject:

I spoke with the financial service which the car has gap insurance through.

They told me i would have to mention to the gap insurance people before a settlement is made that i'd like to retain a vehicle. They would then substract any deductions the insurance made from the settlement check from their own coverage, requiring the customer to make up the difference to finish paying off the loan.

Ergo

the car loan is $15000
the insurance settles at $14000
the salvage is worth $1000
i subtract the salvage from the insurance settlement
$13000
the gap insurance covers $1000 = $14000
i have to make up $1000 in my own money to pay off the loan

Posted: Sat Dec 12, 2009 02:35 pm Post Subject:

That'll work..I knew they wouldn't just let you keep it and they pay it off without some out of pocket...is the sal. bid really only 1k?

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