If you have ever been in a crash and needed GAP insurance you will understand this post.
At least a few times a year I get client and their car has been declared a total loss. The big punch in the gut comes when they find out that the at fault driver does not have to pay the car loan off.
You are left without a car, no down payment, and you still owe on the car that was just destroyed by someone else.Car insurance will pay the actual cash or replacement value of your vehicle and does not have to pay the loan off. If you are upside down then you are screwed unless you have GAP insurance.
GAP insurance should pay the difference between what you owe and what the other insurance company is paying off on your car loan up to a certain percentage. You can purchase GAP insurance through the bank or the dealership but purchasing it through the bank is typically cheaper.If you have been involved in a crash or simply have legal questions I can always be reached at 321-926-8002 or you can text message me with your questions.