Joined
·
464 Posts
I have a question...
A coworker has a new car, full coverage and gap insurance. Car went off the road, into a ditch and is now being totaled by the ins comp...
Car: $14000 (Loan Amount)
Insurance will pay: $10100 (Value)
Difference is: $3900
Gap is willing to pay 25% of value: $2525
So she owes the loan company: $1675
Now maybe I am wrong, but I thought the purpose of gap insurance was to cover the GAP between what you owe and what it's actual value was. Am I wrong here or is something not right?
I was thinking about getting gap insurance for my bike... but if they are only going to pay 25%, it hardly seems worth it to pay the premium.
A coworker has a new car, full coverage and gap insurance. Car went off the road, into a ditch and is now being totaled by the ins comp...
Car: $14000 (Loan Amount)
Insurance will pay: $10100 (Value)
Difference is: $3900
Gap is willing to pay 25% of value: $2525
So she owes the loan company: $1675
Now maybe I am wrong, but I thought the purpose of gap insurance was to cover the GAP between what you owe and what it's actual value was. Am I wrong here or is something not right?
I was thinking about getting gap insurance for my bike... but if they are only going to pay 25%, it hardly seems worth it to pay the premium.