brand new Finance Car being totaled after 3 months

Submitted by Strike_Emergency t3_ydlf5k in personalfinance

hello guys! i just want to ask regarding my case. We bought a new car last July 2022 (Finance with 6.2 apr), sadly we had an accident ( Rear ended) last week and ended up my car being totaled. I just want to ask if what will be the scenario of this one, Do I need to pay my totaled car in full or will the insurance pay my remaining finance balance?I did avail the GAP insurance from the finance company. sorry for asking this guys,I am new to car insurance since I am new immigrant. Thank you

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wolfysalone t1_itsvm15 wrote

Gap insurance will pay the remainder. This is why it's called gap insurance

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Strike_Emergency OP t1_itva924 wrote

Thanks for replying, How about the APR for these because this was supposedly to be paid for 6 yrs. Do I still need to pay the APR or interest even if the insurance paid the acutal car price?Thanks

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wolfysalone t1_itvfci6 wrote

You will pay zero dollars if it's totalled and you have gap insurance. Insurance pays the maket value of the car. Gap insurance takes care of the rest.

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[deleted] t1_itsvt3v wrote

[deleted]

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Strike_Emergency OP t1_itszuea wrote

Do I need to negotiate with the totaled car value or the gap insurance is enough for it?ty

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[deleted] t1_itt080z wrote

[deleted]

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Strike_Emergency OP t1_itva9j4 wrote

Thanks for replying, How about the APR for these because this was supposedly to be paid for 6 yrs. Do I still need to pay the APR or interest even if the insurance paid the acutal car price?Thanks

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