Your changes will require approval by an administrator before they are published.
The article has been updated successfully but requires approval before it is published.Last Updated 14th of April, 2010
What if my loan was more than my car insurance company says my car is worth?
|
Enter your Zip Code below to get a Free Quote. We suggest getting quotes from multiple companies to ensure you get the best rate. There is no obligation to purchase. 
|
Sometimes car insurance companies determine that vehicles are worth an amount that is less than the current amount of the loan the consumer has for the lease or purchase of the vehicle. There are several reasons for this, such as interest rate increases, rebates that did not apply to the purchase price, poor maintenance of the vehicle and other factors. When you sign up for a new insurance policy or file a claim for your vehicle, the car insurance company might determine that the Actual Cash Value (ACV) of the vehicle is less than the amount you still owe on the loan.
Many drivers get GAP car insurance policies to protect against the difference between their vehicle’s ACV in case the car is stolen or totaled when they still owe money to the leasing or lending company. This option is particularly common for those who have leased vehicles, and auto dealers may even offer it as a stand-alone policy at the time of lease or purchase. The basic purpose of a GAP policy is to provide the driver with enough money to pay off their loan or lease balance in the case of a wreck or theft.
GAP auto insurance coverage may not be available in all states or from all insurance companies. A GAP insurance policy will also not always pay off your entire loan balance because there are some items that this type of insurance will not cover. The car insurance policy will not pay for the deductible from the primary auto insurer, missed payments or late fees, and it may only pay a portion of the loan depending on how much your balance is.
Many drivers get GAP car insurance policies to protect against the difference between their vehicle’s ACV in case the car is stolen or totaled when they still owe money to the leasing or lending company. This option is particularly common for those who have leased vehicles, and auto dealers may even offer it as a stand-alone policy at the time of lease or purchase. The basic purpose of a GAP policy is to provide the driver with enough money to pay off their loan or lease balance in the case of a wreck or theft.
GAP auto insurance coverage may not be available in all states or from all insurance companies. A GAP insurance policy will also not always pay off your entire loan balance because there are some items that this type of insurance will not cover. The car insurance policy will not pay for the deductible from the primary auto insurer, missed payments or late fees, and it may only pay a portion of the loan depending on how much your balance is.
Post Comment for "What if my loan was more than my car insurance company says my car is worth?"
To post a comment for this article, simply complete the form below. Fields marked with an asterisk are required.
User Opinions
No users have voted.
Visitor Comments