Though the final amount depends on your car value loan value and the length for which you are getting the car loan.

Does gap insurance cover car payments. If you put down money on the car loansuch as money from a trade-in or a leased carthen you might not be able to recover that in a total loss or claim. If youre in an accident where the car is totaled but youre still underwater on payments. Gap insurance protects you from not having enough money to pay off your car loan or lease if its value has depreciated and you owe more on your car than it is worth.

Any wear and tear maintenance or repairs cannot be claimed under Gap. Gap insurance may also be called loanlease gap coverage This type of coverage is only available if youre the original loan- or leaseholder on a new vehicle. Most car dealerships prefer giving cap insurance because they fear that the insurance does not cover the entire amount and thus the car owner may not be able to pay for it.

Gap insurance makes up the. If youre such a buyer you can expect that during your purchase a car dealership will try to sell you gap insurance. It pays out as long as the total loss claim isnt denied and you have car insurance coverage in effect.

Gap insurance Gap insurance pays off the remainder of the loan or lease so you cant use that money on a new car. With Hyundai Assurance you need to have made at least two scheduled payments on your loans or leases before filing for the benefit and it covers up to 7500 in negative equity in a vehicle. Gap insurance is an optional car insurance coverage that helps pay off your auto loan if your car is totaled or stolen and you owe more than the cars depreciated value.

Gap insurance cannot be used to help pay your lease payments if you cannot keep up with your car loan payments for any reason. GAP insurance is not replacement cost insurance. It is optional insurance coverage and is used in addition to collision or comprehensive coverage.

GAP insurance or Guaranteed Auto Protection coverage exists to protect you from that condition. Gap insurance also covers leased cars. Unless you made a sizable down payment this usually means that you owe more on the loan than the car is worth for the first few years of a car loan.