Originally Posted by corvettecrazy
so say you just bought a car and you have regular isurance and GAP. Then you total it.
does the GAP pay off the rest of the car and then you get the value of the car to get another one?
Well generally speaking full insurance will cover the actual cash value of a vehicle. Which often times is less then what is owed on the loan. The GAP coverage pays off the difference of what is owed and what you were payed out. You can buy GAP coverage from the dealer, the bank, or your insurance company so in each instance it might differ somewhat, but that is generally how it works.