GAP (assured asset protection) auto insurance coverage is one the most necessary, yet least understood insurance products available to vehicle owners. It is generally purchased through the auto dealership or leasing company at the time of the initial purchase or lease.
It’s purpose is elementary: If your car is totaled, gap insurance will cover the difference inbetween what your insurance company says your car is worth (actual cash value) and what you still owe on your loan or lease.
Does an auto insurance policy have to be in the same name as the car loan?
Lien Holders Insurance Indemnity Clause Yes, Your finance contract (Loan) almost always requires that theborrower provide a Total Coverage Auto Insurance Policy on thevehicle being financed to protect the lien holders interest in theproperty until the loan has been sated. It’s a matter of yourfinance contract. Failure of the borrower to provide the coveragerequired under the terms of the finance agreement puts the borrowerin “Default” on the finance note subjecting the vehicle torepossession and other remedies at the lenders disposition. Include All Drivers For Utter Coverage, The Insurance policy should be decently in thename of the vehicle proprietor with any extra drivers listed asadditional insureds on the policy. When the vehicle is still undera finance note. The finance company will generally require that thebuyer maintain total coverage auto insurance until the note is paid.As this is part of the finance agreement signed by the buyer,failure to do so can subject the vehicle to repossession by thefinance company. Operators Liability For liability only, any driver may obtain a liability policy foroperation of the vehicle whether they are the proprietor or not, Sincethe Driver as well as the vehicle proprietor can both be held equallyliable for any loss regardless of who is driving, most insurerswill require you address the insured status of the possessor as well. Owners Liability The possessor “Name on Title” is just as liable for an accident in thevehicle as the driver is, even however the possessor may not have beendriving when the accident occurred. If someone was kind enough tosign for you to buy a car, the least you can do is make sure youdon’t expose them to a lawsuit over a future accident you may havein the car. This is why many states have begun requiring the ownerto have sufficient coverage regardless of whether the owneractially drives the car.
What is the penalty if you have a gap from time you purchase a car from a dealer until you obtain auto insurance?
Makeshift Dealer Gap insurance is considered the same as having no insurance at all. Most companies don’t recognize dealer gap insurance because they are only excess secondary coverage policies, No Liability coverage is generally included in them. Generally if you have a lapse of 30 days or more, or if you have had continuous coverage for less than 6 months, then you will pay Five to Ten percent more on premium. Beware of GAP Insurance, I’ve seen more than a few people who got burned on these after they discovered the gap only covered a portion of the vehicle and suggested no liability coverage for the driver..
As a Broker, I can tell you it truly depends on: the length of time, WHY the gap, your past record, and the individual underwriting policy for each insurer. Be SURE to tell any prospective broker/company of this gap or you could be without in the end!
If your vehicle get stolen and the auto insurance pays the blue book value would the gap insurance cover the rest of the payment on your car loan and what is the limit?
When a car is under lien and stolen/wrecked, the very first payee is ALWAYS the lienholder. You will receive nothing, and the lienholder gets reimbursed for the value of the car. Any outstanding would be your debt. Most insurers make deals with Lienholders to indemnify and lodge up the loan. Not always tho’. MAKE sure to ask the Insurance company how much was paid to lienholder, and ask for proof too!
What formula do auto dealerships use for Gap insurance refunds?
Gap Insurance Refunds .
The response depends on the state where Gap was purchased. In many states the refund is calculated pro rata. This means if a cancel is requested in month 30 of a 60-month loan, 50% of the selling price would be refunded..
Perhaps the most popular refund calculation is rule-of-78s. This permits the Gap Insurer to earn more of the premium in the early stages of a loan. For example, in Rule-of-78s calculations the very first month of a 60-month loan is worth approximately Three.28% of the overall price charged (this number would be only 1.66% if pro rata was used)..
Rule-of-78s is often used because it permits the Gap Insurer to more closely align the risk with the earning of premium. Gap exposure is higher early in the loan and decreases as payments are made.
What is the insurance liability for the cosigner of an auto loan?
None. A cosigner is injecting into a legally strapping contract to repay the debt if the primary borrower defaults on the lending agreement. The cosigner does not have any other obligation nor ownership rights tothe property.
If you buy a car and have no auto insurance how long do you have to get insurance?
MY Reaction .
no coverage at all. Call an insurance company before forearm and set up a binder policy at least for the liability.
How do you get another car loan or will you have to wait until the loan is closed if you have a loan on a car that was totaled and insurance and GAP insurance will pay the total loan balance?
Yes surely you can get another. I was having the same query so I searched for it on net and came across the site AutoFinance-EZ. Interest rates are determined by the actual lenders and are influenced by several factors, including the severity of credit problems, the amount of down payment, and the degree of credit risk. Your auto loan experienced will explain these factors, and tell you exactly what your interest rate will be. .
If you are not sated by the deal you are getting for a 2nd loan on your car, attempt looking for a payday loan.
Can you get auto insurance if you do not own a car?
Yes you can, it’s called a named non-owned policy. It covers you to drive a vehicle you do not own, and it only covers you to drive a vehicle that does not have insurance. If you borrow a friends car and have a name non-woned vehicle and have an accident, the insurance goes after the vehicle, so their insurance will pay. That company may subrogate and come after you then it would be up to your insurance company to determine if they’d accept liability.
Is Gap Insurance on cars worthwhile?
GAP insurance may well be worthwhile. GAP insurance is extra car insurance, generally obtained from the dealer that sells the car, that covers the difference inbetween what the insurer pays for a total loss of the car and what may be owing on the car loan. Normally, if a car suffers a total loss, the insurer will pay the actual cash value. This is the value of a vehicle of like, kind and quality, with similar mileage, accessories, in similar conditon; the actual cash value is calculated for the same general geographic area as the insured vehicle. Because the amount owing on the loan may be more than what the car is worth, GAP insurance pays the difference. rather than the insured being responsible for paying it to the lender. Naturally, if you paid in total for the car upon purchase, you do not need GAP coverage. Likewise, once you pay off the car loan, GAP coverage may be canceled.
Your car is a total loss and pay off is about half of the amount of your loan you carried some from a prior car will your GAP insurance cover the majority or all of the remaining balance of the loan?
You will need to read your GAP insurance information. Like car insurance each plan is different. Some GAP insurance plans state they will pay 100% of the “resale” value. Others state 125% (meaning the current resale value of your car plus 25% above that). Others state 100% of “trade-in” value..
Bottom line – read the insurance plan document you got from the company, or visit the car dealership you bought the car from and pick up a pamphlet..
Good luck to you!
Can I have Auto insurance without a car?
Ask an insurance company for a “broadform” policy. That will cover you for any car you drive. .
Another view .
Yes, albeit it’s rather pointless. Why pay for insurance on something that you don’t even have or own … there is no need. If you drive someone else’s car, you are covered under their insurance policy, provided you have their permission to drive it.
When a applying for a auto loan and there are Two people on the loan does the primary name on the loan have to have insurance if they do not drive the car and have no license?
I’ve been in this exact situation before, there may be a problem and the car people may have to figure the paperwork because you can’t sell a car to someone without a license, but the people at the dealership did it for me and my mom years back so I’m sure they can find out how to do it if they wanna sell that car, but she is going to have to have her name on that insurance policy no matter what, which could bring the cost of insurance up to the point you may not even want the car. That being said it shouldn’t be unlikely to get a nice cheap insurance policy, all in all, you should be able to get the car, we did it a few years back so you should make out ok!
Does your auto insurance extend to a rental car?
If you have liability insurance, you are covered, but only for liability. Liability insurance basically provides private coverage for you while you are in a rental car. Your insurance company will cover any damages you cause to anyone else (property and injury) or any other vehicle, up to the minimum legal thresholds required by law or the boundaries on your policy,if different. It does not cover harm to the rental car..
If you decline LDW at the rental counter and rely on your private coverages, you very likely would be responsible for paying your usual deductible if you were in an accident with the rental car. Also, a loss-of-use fee is not normally covered by private auto insurance policies. And, private auto policies that extend collision coverage to a rental car may only provide a coverage limit equal to the value of your own vehicle. If the value of your individual vehicle is less than that of the rental vehicle, you could still incur some harm responsibility.
If you refinance an auto loan with gap insurance within 30 days do you get a refund?
When you cancel your gap coverage, the company will give you your portion back in pro-rated funds, that you did not use.
Do you have to be the holder of a car to get auto insurance?
Yes. Normally you have to own a vehicle to insure it. You cannot purchase insurance on a vehicle that you do not own with a few exceptions. The exceptions deal with a family household situation. Vehicles titled to a hubby or wifey may be insured on the policy of either one and the same thing applies to children living in the home as a car titled in an adult child’s name may be added to the insurance policy of the parents.
What if your car repossessed with gap insurance?
The gap insurance is part of your auto loan so I am not sure what your question is. Gap insurance covers your car if you total it and the fair market value for your car is below what you owe. If your car gets reposessed, you still owe the lender. Actually, the cost of the gap insurance is flipped into the loan – it’s not part of the loan. If you can find your original paperwork from when you bought your car, find the information on the company that issued the gap insurance policy, and then call them and tell them you no longer own the car, and see if you can get a partial refund on the premium! Can’t hurt to attempt, right? I do vehicle refinances, and our auto loan contract includes the gap insurance (albeit we call it something else) for free, so I have helped several people cancel their gap coverage, albeit we usually do it pretty early in the loan. Same with credit disability insurance, if you have it.
Can you get auto insurance with out having a car?
Even if you do not own acar , you still need insurance protection if you drive one. The auto you borrow, rent, or use may have decent insurance coverage, but you also should protect yourself with individual liability protection. Here is how to get it: Ask for the cost of higher liability coverage based on the assets you own and your projections of future income to be protected. For your protection, consider purchasing as much liability insurance coverage as you can affordAsk the insurance company or agent about your state’s minimum liability coverage rules. States differ in the minimum liability insurance coverage they require. .
Analyze your assets, including home, furniture, art , clothing, computer , electronics, and all other private assets. Get quotes for liability insurance only. .
Estimate your future income. This is significant because, like life insurance, you want to protect your future income as much as possible. This calculation often results in a larger amount than all of your individual assets. I wish you the best .
Coverage on auto insurance when you have a car loan?
Yes, you should get auto insurance coverage when you have a car loan, and even when you don’t have a car loan. The law requires it either way anytime a motor vehicle is operated on public roads..
Can you get auto insurance under your dad if hes not on the car loan?
Yes. The leinholder (the person who has to pay the loan) and the lender (the person who receives the loan payments) is not related to the person insured to drive the vehicle.
Do you have to have auto insurance to rent a car?
If you have liabilitycoverage on your own car, it will generally also apply to the rental car if the rental can be considered a “makeshift substitute vehicle” (such as if you are on vacation or if your car was damages and is being repaired). However, if you do not otherwise have coverage, the rental car company will require you to obtain it, either through it or by some other means.
Are you still covered by gap insurance if my loan is in default?
In many cases you would still be covered, but not usually for the amount by which your loan is in default and not for any extra charges and interest applicable to that default amount.
Can you get auto insurance without a car?
Yes, you can. Ask your insurance company for a “broadform” contract. This contract insures you for every car you drive.
No auto insurance but do have gap insurance?
So called gap insurance covers only the difference inbetween thevalue of your vehicle and what you owe to the bank. It offers noother protections such as private injury & liability, orcollision.
Can you have auto insurance without a car?
You do not have to own a vehicle to tie car insurance. If you do not own a vehicle you can purchase auto insurance to cover you when you are driving borrowed and unowned vehicles. Named non-owners insurance is a policy for individuals who drive borrowed cars and have a need for liability insurance. If you are required to provide an SR-22 to the DMV to keep your driving privilege and do not own a vehicle, named non-owners policies are the best solution. These policies will provide you with liability coverage in any car you do not own if you are found at fault for injuries or harm. .
What happens if you total your car and have gap insurance?
if your car is worth 10k and u own 20k and your car gets totaled, your car insurance will cover 10k for what your car is worth and cap will cover the rest. you wont get any money but you also wont have anymonthly payments anymore.
What do lenders do on a car loan with no car insurance?
The very first thing that they will do is to put coerced place coverage on the vehicle. This is a very expensive type of insurance that only protects the banks interest and only pays the bank. The premiums are added to your account and you are responsible for paying for the insurance. This insurance only provides physical harm coverage and will not pay for harm to your property or anyone Else’s. It does not provide liability and does not meet the state requirement to permit it to be driven on the street. The 2nd thing they will do is to repossess the vehicle because you have violated the contract that you signed with the lender to keep the required coverage on the vehicle. Oh yes, and the cost of impounding and storing the vehicle after it has been repossessed will also be charged to your account.
If you get a loan from a credit union and they put gap insurance in it can you get a refund?
It depends. If you paid it all upfront in cash for the life of the loan and you trade the car in early you might be entitled to a petite refund. If the gap insurance is included in the car payment then no. There is no refund at that time, because you are paying only for what you use.
How much will auto insurance be after car wreck?
If it is found to be your fault, then your insurance could go up. If you are found to be at fault, then it shouldn’t.
Car totaled insurance value car at 16000 and loan amt is 12400 can you use your gap insurance to pay off car loan?
If they gave you 16000 on the car, you would not need gap insurance since your loan amount is 12400.
What does gap auto insurance cover?
Physical harm coverage on an auto policy says that the insurance company has the option of paying to repair, substitute, or pay the actual cash value of the vehicle. In the case where the harm to a vehicle’s cost to repair is more than the ACV of the vehicle the vehicle is totalled and the company will pay the ACV of the vehicle. Sometimes when you buy a fresh vehicle without much or any downpayment you quickly get “upside down” in the loan. As the value of the car depreciates, the loan balance doesn’t fall almost as swift. For the very first duo of years you owe more than the value of the vehicle. The insurance company has nothing to do with auto loan. GAP insurance was created to cover the difference in the ACV of the vehicle and the loan payoff. You can buy GAP insurance from the finance company or bank that financed the vehicle or from your insurance company. Purchasing from the insurance is much less expensive and you can drop the coverage once the loan balance falls below the value of the vehicle.
Does gap insurance on you car expire?
GAP insurance helps cover the difference if your car is deemed a total loss and is worth less than what you owe on the loan. GAP insurance only runs out when you pay down your loan enough that you have equity in the vehicle.
Does the cosigner on an auto loan have to be on the insurance policy?
By co-signing the loan, they are ensuring that you will repay the loan. They do not need to be on the auto insurance policy, but it would be in their best interest.
What is gap insurance for a leased car?
GAP coverage is very necessary especially in a lease situation. GAP coverage comes into play if a vehicle is deemed totaled. What GAP does is to pay for the difference in the actual cash value that is payable under the normal policy and the balance owed to the lease company or finance company of a loan. In the early years of a lease or loan the vehicle value falls quicker that the value of the vehicle. If you total the vehicle within this period you can find yourself without a vehicle but with a sizable amount of money due on a vehicle you cannot drive any more. GAP coverage will pay this difference. The Finance Dept of the auto dealership will attempt to sell you on this GAP insurance. Very first, no matter what they say, it is not mandatory to but it from them. Private Auto insurance companies suggest GAP insurance that does the same thing for about 10% of the premium the dealership charges you for the same coverage. You will also have a right to cancel the coverage whenever you feel the value and loan balance have equaled out. One catch is that you must purchase the GAP coverage from you insurer withing 6 months of purchasing the vehicle. As a matter of utter disclosure, I own and operate a puny Independent Insurance Company in Central Georgia and have for the past 22 years. Prior to that I worked as an agent for a direct writer of insurance for Three years.
What are the best loans to get for car insurance?
This depends on what is best for your financial situation. If you have more money at the time of purchase, you can make a fatter down payment and get a loan with lower payments. However, if needed, you can get a larger loan and pay more per payment.
What are the benefits of auto car insurance?
The benefits of auto insurance are that if a natural or human caused accident were to happen, you would be able to feel safe that your car will be repaired or substituted.
Can i insure my ex-spouse’s car on my auto insurance?
No. You cannot insure a vehicle that does not belong to you. If you were to add the vehicle without telling the insurance company that it doesn’t belong to you there will be no coverage and any claim will be denied. You will have wasted your money.
Can you liquidate auto insurance from a car if you have an outstanding loan on it?
Usually no because the leinholders when to make sure their car will get paid for if their is an accident.
Can I use the auto insurance coverage on my for rental car insurance?
Absolutely, your private insurance can transfer the coverage you have on your individual policy to the rental car thus saving you a good bit of money by not purchasing the coverage from the rental company. But before you do this speak with your agent and make sure your policy will transfer coverage to the rental car and that it has comprehensive and collission coverage to transfer. Many company suggest transfer of coverage to the rental car but also there are many policies that do not provide this transfer of coverage. Make sure you have the correct kind. If there is any question, please go ahead and purchase the coverage suggested by the rental company. I hope this is of assistance.
Auto loan and no collision insurance?
Don’t do it as you are likely violating your contract and the auto will be repossesed or you will be charged for compelled place coverage or both.
What is the best auto car insurance provider?
According to the 2013 costumer satisfaction rates provided by MSN Money, USAA is over all very first. Albeit, different statistics may give different answers to this question.
How do you own a car without auto insurance?
You can own a car, but without auto insurance you cannot ply on the road and the Police will confiscate your licence.
How long do you have to get auto insurance for a fresh car?
This is an issue that you need to make certain of before you drive off the lot. Different policies are all different and you need to make certain with your agent as to whether or not you have automatic coverage. Sometimes it depends on the coverage you have on your other vehicles on your policy. .
What is considered the cheapest auto insurance for a car?
Depending on your age, your hookup, your car, your practice and the number of reclamation in the past as a driver, you can find the cheapest auto insurance by comparing them points by points.
Why must you carry auto insurance in your car?
For the same reason you cannot rob a bank, it is most likely the law in the State where you live. Also it would be terribly stupid and irresponsible not to carry auto insurance. If you have an accident and hit someone else where it is your fault you will be legally responsible for all damages to their vehicle as well as injuries, deaths, loss of income, and any other cost that you may do to the other person. The insurance policy takes this risk from you as well as paying legal fees and even defending suits where someone blames you for an accident you did not cause.
Is it necessary to have gap auto insurance in Fresh York State?
In Fresh York state it is necessary to have gap auto insurance. It is the seller’s legal responsibility to include gap auto insurance in the cost of leasing the vehicle.
How can one acquire GAP insurance for their car?
If you are looking to get gap insurance for your car go onto Esurance. They have lots of deals right to fit you and they wont leave you empty pocketed.
Where can one purchase auto gap insurance?
Auto gap insurance is usually available from any decent motor insurance company. For assistance finding one, one could visit a website such as MoneySupermarket.
What does gap insurance provide in the early years of one’s loan?
Gap insurance refers to insurance which covers the gap inbetween fresh car replacement and the current value of the car. It eliminates the risk of a car insurer not paying out enough in the event of a loss.
Where can one get car and auto insurance?
You can receive car and auto insurance through companies such as Allstate, Farmers Insurance, and Esurance. All of these companies provide free online insurance quotes.
Can you get gap insurance in Georgia after you buy your car?
Sure. You are much better off to get GAP insurance from your insurance company than by buying it from the dealer. If you buy from the dealer you will pay lots of money for the insurance plus you pay for GAP insurance for the life of the loan in advance then pay interest on it as it is financed in your loan. GAP insurance is coverage for the difference in the actual cash value of the vehicle and the amount owed on the vehicle. Reason shows that you will only be upside down in your loan when you very first buy a fresh car because the value decrease rapid the very first year while the loan doesn’t reduce as rapid. You can purchase GAP coverage from your insurance company for a few dollars ($5-10) for a policy period and when the loan balance drops below the value of the car you can drop it. Say the very first two years of a five year loan you owe more than the value however it is most likely less. For two years you may pay $40 for the coverage from an insurance company then drop the coverage. From the dealer you paid $850 plus interest and you can’t cancel it even tho’ it will not pay off anything after the very first two years. To response your question, most insurance companies will let you add GAP coverage for the very first 6 months after you add the car to your policy.