I have Gap Insurance my insurance gave me 18000 i owe the finece 14500 do i get some money to buy a new car?

Question

I have Gap Insurance my insurance gave me 18000 i owe the finece 14500 do i get some money to buy a new car?

Answer 1

No.  You got all you're going to get.

Answer 2

Gap insurance would only come into play if the amounts were reversed - your insurance company gave you $14,500 and you owed the finance company $18,000.

In this case, you will get the balance of the $3500.  Be sure that your finance company discounts the interest for "pre-payment" of your loan.

Good luck and  hope this helps!

Answer 3

you would get the difference.  they paid 3500 more than what you owe, so thats yours.

Answer 4

The purpose of Gap Insurance is to cover the gap between what you owe & what your totalled vehicle is actually worth.  In this way when you go to replace your vehicle you aren't starting with a balance on a car you can't even trade in.

For example, if you owe $10,000, but your vehicle is only worth $8,000, your auto insurance would pay the $8,000 & your Gap Insurance would pay the $2,000 gap that is left.  This way when you go to replace the vehicle you are only dealing with how to finance or pay for the new vehicle instead of the new vehicle plus the $2,000.

Hope this helps!

Answer 5

No you do not get money to buy a new car...In the event your car is totalled or stolen GAP insurance insures you for the "difference" between what you owe on your car and what the fair market value is, usually the blue book value...

For instance if your car is totalled and you owe 14,500 but the insurance company will pay only 11,600 instead of you being responsible for paying the difference of 2,900 GAP insurance will pay it. Get more in depth info on auto loan GAP insurance online at http://e-bestautoloans.com/articles/auto...

GAP insurance covers the gap not over it. Good luck