Case study
Example: John’s gap
John bought a new $10,000 car using a car loan provided by his dealer. The terms of his loan states he needs to repay a total of $11,000 to the dealer. He insured the new car at market value with a comprehensive car insurance policy. The moment he drives it off the lot, his new car turns into a second-hand car and is now worth only $9,000.
Immediately after this, John gets into an accident and completely totals his new car. Fortunately he had comprehensive car insurance. He successfully makes a claim and gets reimbursed the total market value of the car, which is $9,000. Now he has no car and still owes his car dealer $2,000.
John could use his car gap insurance to cover the $2,000 he needs to pay the dealer. Without gap insurance, he would have no car and $2,000 of debt. With gap insurance, he still wouldn’t have a car, but he wouldn’t have any debt either.
Hi
I got accident with my car on my name and I made registration but my separate husband put my private won his business full insurance and now I don’t want I can do… car is written off and how will get money
Hi Suzana,
Thank you for reaching out to Finder.
You would need to have a conversation with your husband on what you could do with regards to your car insurance policy. You may also ask the assistance of Car Gap Insurance to review your policy coverage on the matter for you to be able to know how to claim your insurance. Hope this helps!
Cheers,
Reggie