After an accident, one of the most important things you can do is contact an experienced attorney. He or she may be able to help you seek compensation for the damages you suffered. This includes your medical bills, lost wages, pain and suffering, damage to your vehicle and more.
However, sometimes the decisions you make before a crash can affect your ability to recover full compensation. For example, if you have GAP insurance, it can help you pay off the remaining balance of your auto loan in situations where your vehicle was totaled but you owe more than the car is worth.
Below, we discuss GAP insurance and how it could help you after a crash. If you were injured by another driver’s negligence, the Cleveland auto accident attorneys at Friedman, Domiano and Smith are ready to help you pursue full compensation for all your damages, including compensation for damage to your vehicle. Our firm has been taking on insurance companies for decades and we have a track record of success.
Experienced attorneys. Proven results. Call 216-621-0070.
What is the Likelihood of Totaling Your Car in a Crash?
Some people may be surprised to learn how easy it can be to total a car in a crash. For example, if the front of your car gets damaged, you could damage the frame and the engine. When you add up the cost of repairing the frame, the engine and cosmetic damage, the bill could be several thousand dollars.
No matter how cautious you are when you are out on the road, you could get into a catastrophic crash through no fault of your own. For example, you could get hit by a drunk driver or a distracted driver. If you get hit by a commercial truck, your vehicle could easily suffer catastrophic damage.
Given the potential for totaling your car, you should strongly consider purchasing GAP insurance. You do not want to be left with a totaled car and thousands of dollars of your loan to pay off. This could hurt your ability to get another car to allow you to get to work.
Paying off your auto loan is the last thing you should be concerned with after a crash. You need to be focused on your medical treatment and recovery from your injuries.
How Does GAP Insurance Work?
GAP means Guaranteed Auto Protection. GAP insurance is meant to protect you from having to pay off the balance of your auto loan out of your own pocket.
For example, say you made a small down payment on your car and took out a large loan. Once you drive the car off the lot it will have a significant depreciation in value. If your car gets totaled within the first 18 months, you may owe more on the loan than the car is worth. GAP insurance would cover the difference between the amount the insurance company pays you and the amount you have remaining on your loan.
If your car gets totaled and you still owe money on the loan, the lender is going to want the loan paid off right away. Without GAP insurance, you would need to pay the remaining balance of the loan some other way.
While some lenders require you to purchase GAP insurance, Ohio law does not require drivers to purchase it. If you owe a significant amount on your loan, you may want to get GAP insurance. It is important to note you will not need GAP insurance once you have paid off enough of your loan that you will no longer owe more than your car is worth.
If you are leasing a car or buying a car that depreciates in value quickly, GAP insurance may also be a good idea. For example, sports cars tend to depreciate quickly. Some other cars that often depreciate quickly include:
- Hyundai Genesis
- Cadillac CTS
- Mini Cooper
- GMC Yukon XL
While many people purchase GAP insurance while buying a car, you may be able to purchase this insurance after you have already purchased the car.
If you have questions about what your auto insurance policy covers, the attorneys at Friedman, Domiano and Smith can review your policy with you, particularly after an accident.
Call to Discuss Your Post-Crash Legal Options
There are no upfront fees with our services and no legal obligations. At Friedman, Domiano and Smith, we do not get paid unless you get paid. The initial consultation is also free.
Contact us today. We help Ohio crash victims. Call 216-621-0070.
Comments are now closed