Question
Will gap insurance pay out if I buy the salvaged vehicle from the insurance company?
The ($14,000 value) car was totaled in an accident. I owe more on the loan ($16,000) but have gap insurance. Insurance is saying the value is $14,000, and that I can buy the salvage title for $11,000. Will gap insurance pay $2,000 or not if I accept the salvage offer?
Answer
Your gap coverage should still cover the $2,000 owed on the loan regardless of what happens after that. I would definitely check directly with your insurance company to make sure there is no stipulation that prevents this if you choose to buy back the salvage title.
If you have any questions, feel free to ask.
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