Expert: Richard Hixenbaugh - 3/24/2010

Question
I recently had a wreck and the other person hit my car but since my mom was driving my car and I have only liability, neither company will pay for the damages. Now I still owe about 10800 on the car, what exactly will the GAP insurance pay?

Answer
Hi Sophie,

If the other driver was at fault for the collision, then their insurance company should pay for your car to be repaired or the full value of your car if it is a total loss. If the other driver was at fault and their insurance company is refusing to pay, then you need to file a complaint with your state insurance commissioners office or speak to an attorney.

If your mother was at fault for the accident and you do not have collision coverage, then unfortunately, you are on your own. Your GAP insurance only pays if your vehicle is totaled and will pay the difference between what your auto insurance pays and the balance of your finance contract. GAP insurance will not pay to repair your car.

I hope this helsp
Richard Hixenbaugh