Hit and Run Incident
My car was involved in a hit-and-run, and I have no details about the driver responsible. I currently owe $15,000 on the car, but its value is only around $4,000 to $5,000. I have full coverage insurance and gap insurance. If the car is declared a total loss, will I be responsible for paying any remaining balance?
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I’m sorry to hear about your situation. Since you have full coverage insurance and gap insurance, here’s how it typically works:
Full Coverage: Your full coverage insurance should cover the damages to your car, up to its actual cash value (ACV), which sounds like it may be around $4-$5k.
Gap Insurance: Since you owe more on the car than it’s worth, the gap insurance should help cover the difference. If your car is deemed a total loss, your full coverage will pay the ACV to your lender, and then gap insurance should cover the remaining balance on your loan.
Out-of-Pocket Costs: If everything goes as outlined, you shouldn’t have to pay anything out of pocket to settle your loan, as long as the claim is approved and both insurance policies respond properly.
Make sure to contact your insurance company promptly to start the claims process, and gather any documentation you have regarding the car and the accident. It may also be a good idea to review your policy details or speak directly with your insurance agent for any specific questions related to your situation.