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4 comments to Is gap cover insurance on a vehicle transferable to the new owner?You must be logged in to post a comment. |
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No because,that was a plan between the bank and the previous owner.Most banks only do that on Brand new cars and some don’t do it at all anymore.I would suggest asking the bank that you are planning on getting the loan from.
absolutely not
I don;t believe so. It is a contract between the person and the lender. Only if you are assuming the original loan can GAP insurance be transfered.
No, it would not transfer, but you may not need it. Gap coverage is coverage in case you incur a total loss (theft, totalled in an accident, etc.) and you owe more money on the car than the car is actually worth at the time of the loss. The gap coverage will help (sometimes partially, sometimes totally) cover that ‘gap’. For example, if you owe $10,000 on a vehicle when you have a total loss, but the vehicle is worth $15.000, you wouldn’t need the gap coverage, since you would stand to receive $5,000 after the loan is paid off. However, if this car is only worth $7,000 at the time of loss, but you owe $10,000, you are still responsible for the remaining $3,000. Here’s where gap coverage would kick in.
If you do need the coverage, speak to your insurance agent, adding it onto an exisiting policy tends to be the least expensive way to secure this coverage.