Will Your Insurance Pay Off Your Loan If Your Car is Totaled?

If your vehicle is totaled or stolen, your primary auto insurance carrier will usually pay only the actual cash value (current market value) of your vehicle less your deductible. This amount could be substantially lower than your loan balance. The final result is a financial GAP where you must pay the difference between your loan balance and your insurance settlement, which could mean thousands of dollars out of your pocket.

That's why many owners choose GAP (Guaranteed Auto Protection). GAP coverage may eliminate the out-of-pocket expense you would incur to pay off your loan should your vehicle be stolen or totaled.