My car is totaled and insured through all state. I also have a loan of about $12k through Navy Federal and I have gap insurance as well. How does the gap work for loan if my car ends up being valued at more than my leftover amount?
Let’s say they value it at $15k, $12k would be used to pay off the car and would $3k be refunded to me? Does my GAP not get used at all then or is there additional money I’ll get?
Asking just to see what I could be working with in order to get another car.
Posted by eringpt
2 Comments
Gap is used if the payoff to Navy Federal is not enough to pay off your loan.
If your loan is paid off, you get your equity.
You can then cancel your Gap and depending on how it was financed, get a pro rated amount back.
You would receive any money after the loan is paid off.
GAP would not come into play unless your vehicle is worth less than you owe. If you receive more money than you owe, GAP does not pay you anything.