Reader’s Question:

I need to sell my new car and I can’t afford the payments. I have gap insurance in Newburg, Kentucky. Will it only help if the vehicle is totale or stolen? Will the gap insurance help if we are trying to sell the car?

James

Newburg, KY

Yes, GAP insurance would only be of use if your car was found to be a total loss or if it was stolen and your primary insurance policy paid out actual cash value for the car. You cannot make use of your GAP insurance policy in Newburg, Kentucky if you are upside-down on your loan and wish to sell the car.

Gap insurance is use to pay the difference between a covered insurance loss and the balance of your lease or loan. If you sell a car, this is not an insurance loss and threfore a claim with your Gap insurance company could not be placed.

Tags: auto insurance