Hit & Run Incident
My car was involved in a hit-and-run accident, and I have no details about the driver. I still owe $15,000 on the car, which is worth about $4,000 to $5,000. Thankfully, I have full coverage 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; that sounds really frustrating. Since you have full coverage and gap insurance, here’s how it typically works:
Full Coverage Insurance: This should cover the damages to your vehicle up to its actual cash value (ACV), which is generally what the car is worth at the time of the accident. In your case, that’s around $4-5k.
Gap Insurance: This is designed to cover the difference between what you owe on the car ($15k) and its actual cash value (the insurance payout of $4-5k). So, if your car is deemed a total loss, the gap insurance should help cover the remaining balance you owe on the loan.
In most cases, you wouldn’t have to pay anything out of pocket if the car is totaled, as the gap insurance should handle the leftover amount you owe. However, it’s essential to consult with your insurance provider to understand the specifics of your policy and confirm that everything will be covered as expected. Make sure to file a police report if you haven’t already, as this can help with your claim. Good luck!