When I purchased my car, I rolled over another loan into my current loan and now my car is a total loss. Will the gap insurance pay the amount that I rolled over?
Total Comments: 16
Posted: Sun Jul 19, 2009 07:29 pm Post Subject:
No Gap insurance will not pay for your amount u rolled into your present/current loan from previous loan.
Generally, GAP fills gap between Actual value of car and balance of loan. So just the car you drive is covered and not the other party accidental car.
Also GAP Would cover all items you financed while making the purchase on of your vehicle… So a good advice is always purchase accessories at time of purchase and put it on loan rather than making a purchase months later.
Notable general GAP exclusions include:
-- Overdue lease/loan payments
-- Financial penalties imposed under a lease for excessive use
-- Security deposits not refunded by the lessor
-- Costs for extended warranties, credit life insurance, or other insurance purchased with the loan or lease
-- Amounts deducted by the primary insurer for wear and tear, prior damage, towing, and storage
-- Carry-over balances from previous loans or leases
-- Equipment added to the car by the buyer, meaning that only factory-installed equipment is covered
Posted: Mon Jul 20, 2009 02:58 am Post Subject:
GAP means Guranteed auto protection and if that is true than what you are expecting is true but there are certain exclusion as have been posted by fellow bloggers. On the face of it it does not seem that your insurer will cover you for the roller over amount
Posted: Mon Jul 20, 2009 11:49 am Post Subject:
Will the gap insurance pay the amount that I rolled over?
It depends strictly on the specific policy you have. When was your wreck? When was it deemed a total loss?
Posted: Mon Jul 20, 2009 05:01 pm Post Subject:
A lot of it actually also depends on the way that the bill of sale and paperwork was done at the dealership. If they simply raised the price of the vehicle, or played another numbers game...you may not have anything to worry about. Gap will pay the difference between the loan amount and the value of the vehicle as other people stated.
Good Luck!
Posted: Tue Jul 21, 2009 04:16 am Post Subject:
Will the gap insurance pay the amount that I rolled over?
Talk, I've to agree with both the posters above me. It'd depend upon the particular policy.
Normally, the Gap insurance carrier would exclude any amount over and above the actual loan on the car. Now, if your policy has the same clause in it, then you might not get the rolled over amount covered by the gap policy.
Is it possible for you to check the policy terms? Have you already received the check for the totalled value of the car?
~ Jeremy
Posted: Tue Aug 11, 2009 02:33 am Post Subject: Rollover
The GAP should cover the entire leftover amount of the loan...minus any outstanding payments or late fees. My car was just totaled out and my GAP is paying off the loan including the 500 deductible that my regular insurance took off of my payout.
Posted: Wed Aug 12, 2009 01:37 am Post Subject:
I had 2 relatively new vehicles several years ago, my husband died suddenly, and we didn't have life insurance on the vehicles (we were young and dumb). I made payments for another year, and then traded both vehicles off on a new Yukon. All of the cars in question were financed through GMAC by the way.
When I purchased the Yukon, the finance people explained to me that since both of the other loans were upside-down, I had to get a vehicle that was worth enough to get the Yukon AND pay off the other two vehicles.
Therefore, technically, my other vehicles were paid off, although I paid a ton for the Yukon. To make a long story short, my GAP insurance would cover the entire balance of the loan if the vehicle was totalled.
Good luck to you!
Posted: Wed Aug 12, 2009 04:03 am Post Subject:
Hello Mswatson,
I guess your new financier just merged the other two loans into the new one by increasing the cost of the car. Well, in such cases the Gap would cover the balance of the loan. But most often Gap insurance wouldn't pay for the amount that you'd rolled over from another loan. If your car gets totalled, you'd be responsible for the amount that you have attached.
IMO everytime you start with an auto loan upside down you should carefully choose the Gap coverage to avoid the nasty little surprises at the time of need.
~ Jeremy
Posted: Wed Aug 12, 2009 04:40 am Post Subject:
I agree with you Jeremy. There was no way I would have signed on the dotted line for that Yukon without GAP coverage!!!
Posted: Wed Aug 12, 2009 10:54 am Post Subject:
Not ALL GAP policys will cover the rollover...some do...some do not...always check the wording of the contract.
Posted: Sun Jul 19, 2009 07:29 pm Post Subject:
No Gap insurance will not pay for your amount u rolled into your present/current loan from previous loan.
Generally, GAP fills gap between Actual value of car and balance of loan. So just the car you drive is covered and not the other party accidental car.
Also GAP Would cover all items you financed while making the purchase on of your vehicle… So a good advice is always purchase accessories at time of purchase and put it on loan rather than making a purchase months later.
Notable general GAP exclusions include:
-- Overdue lease/loan payments
-- Financial penalties imposed under a lease for excessive use
-- Security deposits not refunded by the lessor
-- Costs for extended warranties, credit life insurance, or other insurance purchased with the loan or lease
-- Amounts deducted by the primary insurer for wear and tear, prior damage, towing, and storage
-- Carry-over balances from previous loans or leases
-- Equipment added to the car by the buyer, meaning that only factory-installed equipment is covered
Posted: Mon Jul 20, 2009 02:58 am Post Subject:
GAP means Guranteed auto protection and if that is true than what you are expecting is true but there are certain exclusion as have been posted by fellow bloggers. On the face of it it does not seem that your insurer will cover you for the roller over amount
Posted: Mon Jul 20, 2009 11:49 am Post Subject:
Will the gap insurance pay the amount that I rolled over?
It depends strictly on the specific policy you have. When was your wreck? When was it deemed a total loss?Posted: Mon Jul 20, 2009 05:01 pm Post Subject:
A lot of it actually also depends on the way that the bill of sale and paperwork was done at the dealership. If they simply raised the price of the vehicle, or played another numbers game...you may not have anything to worry about. Gap will pay the difference between the loan amount and the value of the vehicle as other people stated.
Good Luck!
Posted: Tue Jul 21, 2009 04:16 am Post Subject:
Will the gap insurance pay the amount that I rolled over?
Talk, I've to agree with both the posters above me. It'd depend upon the particular policy.
Normally, the Gap insurance carrier would exclude any amount over and above the actual loan on the car. Now, if your policy has the same clause in it, then you might not get the rolled over amount covered by the gap policy.
Is it possible for you to check the policy terms? Have you already received the check for the totalled value of the car?
~ Jeremy
Posted: Tue Aug 11, 2009 02:33 am Post Subject: Rollover
The GAP should cover the entire leftover amount of the loan...minus any outstanding payments or late fees. My car was just totaled out and my GAP is paying off the loan including the 500 deductible that my regular insurance took off of my payout.
Posted: Wed Aug 12, 2009 01:37 am Post Subject:
I had 2 relatively new vehicles several years ago, my husband died suddenly, and we didn't have life insurance on the vehicles (we were young and dumb). I made payments for another year, and then traded both vehicles off on a new Yukon. All of the cars in question were financed through GMAC by the way.
When I purchased the Yukon, the finance people explained to me that since both of the other loans were upside-down, I had to get a vehicle that was worth enough to get the Yukon AND pay off the other two vehicles.
Therefore, technically, my other vehicles were paid off, although I paid a ton for the Yukon. To make a long story short, my GAP insurance would cover the entire balance of the loan if the vehicle was totalled.
Good luck to you!
Posted: Wed Aug 12, 2009 04:03 am Post Subject:
Hello Mswatson,
I guess your new financier just merged the other two loans into the new one by increasing the cost of the car. Well, in such cases the Gap would cover the balance of the loan. But most often Gap insurance wouldn't pay for the amount that you'd rolled over from another loan. If your car gets totalled, you'd be responsible for the amount that you have attached.
IMO everytime you start with an auto loan upside down you should carefully choose the Gap coverage to avoid the nasty little surprises at the time of need.
~ Jeremy
Posted: Wed Aug 12, 2009 04:40 am Post Subject:
I agree with you Jeremy. There was no way I would have signed on the dotted line for that Yukon without GAP coverage!!!
Posted: Wed Aug 12, 2009 10:54 am Post Subject:
Not ALL GAP policys will cover the rollover...some do...some do not...always check the wording of the contract.
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