I have my auto loan with a credit union and paid for the gap coverage... does anyone know if it will cover a loss due to trading in?

Say for instance your car KBB good condition value is $15K but the dealer gave you $10K toward a trade in.... can you file a claim with the GAP coverage for $5K ?

Anyone ever done this?

 

dunno but thats an excellent question.

 

Gap protection is intended to cover the difference between the value of your car at the time it's totaled, stolen, ect and your outstanding loan balance, which you still are responsible for paying even if your car is sitting under 10 feet of water. Depending on what state you live in and the type of coverage you choose, your insurance deductible may be covered as well.

•Amount you owe on your auto loan $20,000
•Your car's book value at the time of loss 15,000
•Your insurance deductible 500
•Amount the insurance company pays you 14,500
•The gap $5,500

hope that helps, but its not intended for the varience on vehicle trade in.

 

Thanks for the info -

OK, so lets say I owe $14K and the book value is $18K.
I sell the car to bob down the street for $10K.
Will I be reimbursed the $4K loss of what I owe... or
Will I be reimbursed for the $8K of the book value? (minus any deductible)

Hope that made sense...

 

ya makes sense, its not intended for sale or trade in loss.only for stolen, totaled or a hurricane took off with it, a flood and car was lost.
does that make sense.

 

Arg, missed that in your first post. Thanks. I need to head to my local CU today anyways so I'll get a final answer from them. I'll report back to this tread with what they say.

 

Yep only for theft, collision, damage, etc...