Totaled Car and No Gap

by Guest » Wed Feb 16, 2011 05:45 pm
Guest

I was in a wreck yesterday, and I think my car will be totaled. I do not have Gap insurance. The other driver was at fault, and their insurance is providing a rental car. I just got this car a week ago, and I don't think I added GAP insurance on my car loan. Since I am not at fault, will I have to pay the remainder on my car loan, or does the other insurance cover it?

Total Comments: 1

Posted: Wed Feb 16, 2011 06:01 pm Post Subject:

if it is in fact totaled, the other guy's insurance will cover up to the the limits of his/her liability property damage or the value of your vehicle, whichever is less.

if your vehicle is worth more than their liability coverage, your collision coverage will kick in the rest. (which I assume you must have since you have a loan)

however, without gap insurance, you will have to pay the difference if your loan is greater than the value of your vehicle.

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