my bank says I have

Posted: Mon Feb 11, 2008 11:08 am Post Subject:

My friend, you are required to clear off the money that you owe to the bank no matter what the status of the vehicle. You were wise to take out the GAP policy on it. Now just tell me what to you mean by this.....

I carry Gap Insurance. My Auto Insurance company paid off over half the loan.

Posted: Mon Feb 11, 2008 01:17 pm Post Subject:

I'm betting (tell if if not true) your carrier paid, minus your deductible (which you still owe) GAP policy paid, but you had some prior unrepaired damage maybe? Please explain what the gap paid and didn't pay for...and we can be of further assistance, but I'm betting they are correct...more info=more help

Posted: Mon Feb 11, 2008 04:02 pm Post Subject:

I would have thought that the gap would have kicked in and paid for the difference, but you bring up some really good points Lori. Here comes that investigator out in you, huh, LOL. You always know the right questions to ask, I would have never thought about unrepaired damage or a deductible. You are awesome. Now if the OP will come on and answer truthfully, that would be great.

Posted: Tue Feb 12, 2008 12:11 am Post Subject:

I have gap insurance, I would hope that if something happens that I can depend on it to do what I am expecting it to do if I need it.

Posted: Tue Feb 12, 2008 11:13 am Post Subject:

Most GAP policys don't cover your deductible...nor will they cover prior unrepaired damages....more than likely this is what the OP has left to pay...Good natured if no unrepaired damage, your deductible is all you should have to pay...and I have seen one GAP policy that paid the deductible as well, personally I think they made a mistake, but hey, good for the owner...

ERB, you flatter me! :oops:

Posted: Tue Feb 12, 2008 11:18 am Post Subject:

Paying the deductible isn't too bad, I don't really mind that.

Posted: Tue Feb 12, 2008 04:05 pm Post Subject:

OP, did YOU notify your GAP carrier of the loss? If not, I'm betting they don't even know about the loss. Again, -you- need to contact your GAP carrier to make sure they handle the remaining part of the loan. Also, if they did pay, you can ask them why the paid the amount that they did (i.e. were there certain things they did not pay for, etc).

Posted: Tue Feb 12, 2008 05:35 pm Post Subject:

Another potential to consider is the original amount of the loan. Did the loan on the totalled vehicle also include a loan amount that was not settled and paid off on a prior vehicle?

There are those folks out there that get what's referred to as "backwards," "upside down" or "hoop-teed" in their vehicle. In real language, that's a situation in which you owe more on the car than it's worth. The theory is that your gap insurance should make up the difference between those numbers, with certain limitations. UNLESS...the car that you traded in on the now totalled vehicle was also "backwards" and the lender included the amount that you were upside down in the NEW loan on the NEW car.

For example: the car you owned previously was traded in on this totalled car. You owed $3,000 more than that car was worth, and the dealer included this $3,000 within the financing package on the new car. Let's say that you got into the new car with little or no money down, as you have good credit. Then you wreck the new car. Oooooh- ugly.

Many people are of the opinion that when you total out a car, you should be paid what it would cost you to replace that car. Automobile losses are settled on an "Actual Cash Value" (ACV) basis. For simplicity- consider the ACV the depreciated value. Many cars lose a lot of their value once they're titled and off the car lot. Ask any Dodge car owner that one!

When considering the potential that you have added a previous loan balance to the loan balance on the new car (as described above), you could easily owe more than the combined payments from your primary car insurance and the gap coverage. I see this not uncommonly, and it's not a good situation to be in.

Not only do you have to pay off the loan, it will affect your credit pretty heavily if you don't. Hopefully, this isn't the case, and I hope that tcope is right in that the gap insurer isn't even aware of the loss yet.

Let us know what's up, and we will do our best to help!

InsTeacher 8)

Posted: Tue Feb 12, 2008 11:57 pm Post Subject:

Great ins teacher ! I'd forgot about rolling another loan onto the car note...and unfortunately have seen many people do it...this again could explain a 'gap' that his gap carrier didn't pick up.

Posted: Wed Feb 13, 2008 03:02 am Post Subject:

My gap is on my new vehicle, it is financed and is on its own original loan, I should be okay if I need this right?