Gap insurance question?
I bought a car from Jaguar with gap insurance and i totaled my car after some dumb lady pulled an illegal U turn in front of me. Her insurance said my car is totaled. They're coming to pick it up in a couple days. And i was wondering how does gap insurance really works and do i have to buy my next car from Jaguar? Or can I go to any other dealership. If gap insurance does cover the "gap" between what i receive from her insurance for my car and what i owe. How do i receive the money from gap. This is my first accident in over 10 years of driving let alone having a car totaled. I only have 2 more years on my loan. I owe 11 gran left on my loan.
- opinionatedLv 76 months ago
you do not get any of the gap money, it goes to pay off your loan
- Anonymous6 months ago
Gap insurance pays the difference between the outstanding loan and what the car is worth. YOUR insurance company totals your car and says it's worth $30,000. Your loan is $35,000. Gap insurance pays the $5,000 difference.
- Obi Wan KnievelLv 76 months ago
You included the right answer in your question: GAP covers the difference between the vehicle's actual cash value (what her insurance pays you for the total loss) and the remaining balance on your loan. That's all GAP covers, in fact.
No you don't have to buy another Jag, in fact you don't have to buy anything at all. The other idiot's insurance pays just for your vehicle (depreciated retail value), your GAP policy covers whatever you still owe the lender, and you're back to Square One.
If you were a good customer, and it sounds like you were, that same lender will probably be happy to set up another vehicle loan.
- StephenWeinsteinLv 76 months ago
You don't have to buy your next car from Jaguar. You can go somewhere else -- or you can even decide to stop driving and just go everywhere by Uber, bus, etc.
If you have gap insurance and you are current on your loan, then it covers the "gap" between what your car was worth (which should be what you receive from her insurance) and what you owe. If you have missed any payments, then it only covers the "gap" between what your car was worth (which should be what you receive from her insurance) and what you would owe if you were current (it doesn't cover the missed payments, just the ones that are due in the future).
You don't receive any money. All of the money is sent to the lender to pay off your loan.
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- zipperLv 66 months ago
If her insurance does not pay the full bill, the gap insurance pays the open ended amount for you so you do not have to.
- A HunchLv 76 months ago
GAP insurance covers the difference between the value of the car and the car loan. This is for when you are upside down on the loan.
- Based on what you have told us, you may not be upside down on the loan, so the gap insurance is not part of the deal.
If you owe more than the car is worth:
- the insurance company will pay your car off directly to the lender
- the gap insurance will cover the amount that is still outstanding on the loan
- if your gap insurance is through your lender, you need to continue paying your car loan until the insurance company pays out.
- You can purchase any replacement car you want
If the car is worth more than you owe:
- insurance company will pay off lender
- insurance company will give you a check for the amount the car is worth over the loan amount.
- oklatomLv 76 months ago
Once insurance pays out the market value, if there is anything left on your loan GAP pays that off so you walk away clear and can buy another car where ever you want to if you have a down payment.
- JetDocLv 76 months ago
Talk to YOUR insurance company.
- STEPHENLv 76 months ago
" Her insurance said my car is totaled."
Her insurance doesn't have the authority to make that decision. Your's does.
You're not tied to anything. Gap insurance should pay the difference between the loan and the insurance settlement on a totalled car.
- boy boyLv 76 months ago
when i bought my latest car i bought gap insurance the insurance should pay the difference between what the insurance company pays you and the price you paid for car ...so if car cost £20.000 ..insurance pays out £12.000 ..the gap insurance should pay you £8.000 ..and no you are not tied to buy another jag