Does GAP insurance pay for the outstanding loan amount, if I decide to keep the totaled car?
Total Comments: 2
Posted: Wed Jan 16, 2013 07:12 pm Post Subject:
You will have to read the language of your GAP coverage. It may or may not. The probable answer is yes, it will pay, but you will have to contribute the salvage value that the insurance company deducts in order to pay off your loan. GAP will not cover that amount when you retain the vehicle.
Posted: Thu Jan 17, 2013 09:14 am Post Subject: How GAP pays for retained totaled car
Gap insurance only pays for the outstanding loan balance, after the ACV is paid by the auto insurer.
If you decide to keep your totaled car, the ACV paid for the car by your standard auto insurance policy will be less (since the policy deductible and salvage value will be deducted).
Gap will not consider the deductions. It’ll only take into account the initial ACV costs that the insurer would have paid, if you wouldn’t have retained the totaled car. Thus, you may need to pay out-of-pocket in spite of having GAP insurance.
Posted: Wed Jan 16, 2013 07:12 pm Post Subject:
You will have to read the language of your GAP coverage. It may or may not. The probable answer is yes, it will pay, but you will have to contribute the salvage value that the insurance company deducts in order to pay off your loan. GAP will not cover that amount when you retain the vehicle.
Posted: Thu Jan 17, 2013 09:14 am Post Subject: How GAP pays for retained totaled car
Gap insurance only pays for the outstanding loan balance, after the ACV is paid by the auto insurer.
If you decide to keep your totaled car, the ACV paid for the car by your standard auto insurance policy will be less (since the policy deductible and salvage value will be deducted).
Gap will not consider the deductions. It’ll only take into account the initial ACV costs that the insurer would have paid, if you wouldn’t have retained the totaled car. Thus, you may need to pay out-of-pocket in spite of having GAP insurance.
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