Question

If I have full coverage and gap insurance, which one pays out if I total my car?

I am pretty sure my full coverage insurance will pay off my car that was totaled.  As I am carrying and paying for two separate insurances, should they both pay for loan pay off? Would the insurance through my bank pay off the loan? Would I get a check from my insurance, which would be mine, if the bank insurance already paid off the loan?

Oct 15, 2019 Cass Lake, MN

Answer
Ross Martin

Oct 15, 2019

Sorry to hear about your accident. Your auto insurance plan will pay out the actual cash value as determined by the adjuster—minus any deductible you have. The loan/lease payoff, or gap insurance, should be paying off any remainder of the loan after the insurance has paid their portion. In the case of a financed vehicle, you would only get a check if you have equity on the vehicle. 

I hope you are back on the road soon. Have a good day!


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