Hit and Run Incident
I was involved in a hit and run where someone damaged my car, and I don’t have any information about the driver. I still owe $15,000 on the car, but its current value is only around $4,000 to $5,000. I have full coverage insurance and gap insurance. If the car is deemed a total loss, will I be responsible for any payments?
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I’m sorry to hear about your situation; it can be really frustrating. Since you have full coverage insurance and gap insurance, here’s how it typically works:
Full Coverage Insurance: This should cover the actual cash value of your car at the time of the accident, which, in your case, would be between $4k and $5k. Your insurer will assess the damages and determine if the car is totaled.
Gap Insurance: Since you owe $15k on the car, and its value is much lower than that, gap insurance should cover the difference between what you owe and what your full coverage insurance pays out.
In the event that your car is deemed a total loss, your full coverage will pay out the value (around $4k to $5k), and then your gap insurance should cover the remaining balance of your loan (about $10k to $11k).
Provided everything goes smoothly, you shouldn’t have to pay anything out of pocket as long as you submit all the necessary claims and documentation to your insurance companies. However, it’s always a good idea to check your insurance policy details and speak directly with your insurance agent to clarify any specific terms that may apply to your situation.