Here is a recent email questions I received:
"Hi Bobbie, I hit a deer and my car become total loss according to my insurance company. I bought the new in 2003 from ford dealership. However I have refinanced it once with them and now they are telling me that I do not have Gap insurance. I owe more than what the insurance company is offering. Is there anything that I can do? Thank you S" (name shortened for privacy)
This is an unfortunate situation and it happens to many. If you owe more on your loan than your car, you may find yourself in a similar situation. This reader, unfortunately, will have to pay the remaining amount on their car loan from their own pocket. GAP insurance would have prevented this situation.
a question i have is, what if someone else in my family gets into an accident and my car is totalled, will my gap insurance still cover the amounts since it was not me who was driving at the time of the accident?