Quote:
Originally Posted by RavenZL1
GAP insurance covers the difference between what the insurance is paying out on the car and what you still owe on your car loan. So if he owed 50K on his car loan and the insurance was going to give him 40, the GAP insurance would cover that extra 10K to pay off the loan. If he only owed 30K on the car, GAP insurance wouldn't kick in.
GAP insurance is generally for those that put little or nothing down on a car to help cover the immediate depreciation hit in case the car is totalled.
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Yes, I know that and so if the OP owed more than his insurance would cover then he'd be whole. We have not been told what the numbers are.
EDIT:
Going back and reading the OP it sounds like he paid for it cash? Trading his 5th Gen and selling a classic Camaro.
So, yes, GAP would not make sense in this case. I was thrown off when he said he's making payments on a Camaro that is wrecked. Probably had to finance a small amount after selling the other two cars.