I got into an accident two days ago and hit something (possibly a fender) laying in the road. I’m under the impression that my car may be totaled.I spoke with insurance, and they said I was not at fault, and they plan to have my car evaluated at a shop next week. I have a 2017 Hyundai sonata that is only worth $4k as it has depreciated greatly since buying it. I bought the car for $20k, and I still owe $14k on the car, and I do have gap insurance. It tore off a part of the front of my car. Because I have gap am I likely to owe anything other than my deductible to progressive? I’ve read conflicting things online, but from my understanding gap insurance should pay whatever insurance doesn’t because the car is worth less than the amount that I owe ? Is this correct? I’m just worried because I owe so much on the car. I’m also questioning if the insurance company will even fix the car because it is worth so little.
I did research and my year and model of car is selling anywhere between $9k-12k. My insurance is progressive if that helps and I live in Florida. The car has about 104k miles.
Suspect car is totaled, will gap insurance pay?
byu/Jailensjw inInsurance
Posted by Jailensjw
11 Comments
I totaled my car in August. I called my bank to let them know and they paused interest while insurance does its thing.
Took them about 40 days to get the insurance payout from my regular insurance.
They updated and paused my payments for 2 months while they submit my gap claim for me.
If you have gap that’s what it’s there for.
lots of gap policies have maximum coverage limits, like X% above the value of the vehicle, won’t pay for rolled over negative equity, etc
you’ll need to check your specific gap policy to see if it has a cap
So is your car worth 4k or 9k-12k? Because you’ve said both and that’s a very wide difference. Gap usually has a cap on how much it will pay, usually that’s only 25% over the car’s value. Check your gap paperwork.
You are likely going to run into cap issues with GAP. Its unlikely they will cover nearly 250% of the cars value.
You may want to check with your adjuster again. Hitting an object in the road is usually an at fault claim
Progressive GAP covers up to 25% of the cars actual cash value, unless your state has some state specific statute that makes it cover more
Assuming you have the appropriate coverage on your policy (collision), GAP would kick in an amount after the ACV is paid, but because you are so under water on the loan, expect to owe a balance after that. You won’t know how much until the claim is closed, but it would be smart to plan for it.
Running over something in the road is usually an at fault claim since you “could have avoided it”.
Why are you saying your car is only worth $4k if similar are going for $11-$12k
Who is your gap through? Progressive pays 25% of the acv – on top of your settlement for theirs. Some banks do offer total gap though, it’s expensive but it does exist. Dealers also have it too.
I wouldn’t panic yet. Let your insurance do its thing and worry when it’s time to worry.
The plus side of cheaper cars like Hyundai’s – is they have cheap parts too. As far as the deductible, that’s never owed to your insurance. It’ll just come off the top of your pay out.
Who is your gap through? Progressive pays 25% of the acv – on top of your settlement for theirs. Some banks do offer total gap though, it’s expensive but it does exist. Dealers also have it too.
I wouldn’t panic yet. Let your insurance do its thing and worry when it’s time to worry.
The plus side of cheaper cars like Hyundai’s – is they have cheap parts too. As far as the deductible, that’s never owed to your insurance. It’ll just come off the top of your pay out.