A serious car wreck in Louisiana can leave you with a totaled vehicle and a loan that must still be paid even though you no longer have a drivable vehicle.
An insurance company will write a check based on the value of your car immediately before the accident. If you owe more on your vehicle than its book value, you’ve got a problem.
GAP insurance coverage exists to close the distance between what your totaled vehicle was worth and what you still owe on it. It doesn’t cover your other injuries, but it can keep you from paying on a vehicle you no longer have.
If you have been injured in a car accident in Louisiana, a Baton Rouge accident lawyer from Chris Corzo Injury Attorneys can help you secure maximum compensation for your damages. Call our car accident attorneys today at (225) 999-1111 or complete the short form on our contact page and schedule a free consultation to discuss your claim.
What Gap Insurance Covers
Vehicles depreciate quickly. If you finance most or all of the vehicle’s price and only pay the required monthly payments, your loan balance will quickly be greater than the value of your car.
If your car is stolen or destroyed in a serious wreck in Louisiana, and you do not have GAP insurance, your loan will not be paid in full. The insurance company will write a check only for the value of the vehicle before the accident, not for the total amount you owe.
Instead, you will then have a loan balance that you are legally obligated to pay, but no vehicle. You would be left needing to buy a new car while still owing money on the first one.
Guaranteed Asset Protection (GAP) insurance is an optional car insurance coverage that helps pay the difference between what you owe on a car loan and the car’s depreciated value when a car is totaled or stolen. If you have GAP insurance, it will pay off your loan balance.
What GAP Insurance Does Not Cover
GAP insurance is a great product for buyers who finance most of a vehicle’s value or opt for extended financing terms. However, GAP insurance does not cover your injuries or other important losses.
Some things that GAP does not cover include:
- Injuries. GAP coverage does not pay medical expenses, lost wages, pain and suffering, or other types of economic and non-economic damages. It only covers the balance owed on your loan.
- Another vehicle. GAP only pays off your loan. It does not pay money toward the purchase of a new or replacement vehicle.
- Your deductible. Unless your policy specifically provides otherwise, GAP does not cover your auto insurance deductible.
- Extras rolled into the auto loan. If you purchased an extended warranty, service contract, or financed a balance from a prior trade, those costs may not be covered by GAP.
GAP Coverage is No Substitute for an Injury Claim
If you were injured in a car accident caused by another party’s negligence, a car accident attorney can help you file a personal injury claim to secure compensation for all damages you sustain.
In a successful claim, you can recover economic damages such as medical costs, lost wages, property damage, and other financial losses. You can also secure compensation for pain and suffering, mental and emotional distress, loss of enjoyment of life, and other intangible costs.
Talk to a Baton Rouge Car Accident Lawyer Today
If a serious car accident in Louisiana injured you, you need an experienced car accident attorney to protect your rights and help you secure the full value of your damages.
At Chris Corzo Injury Attorneys, our Baton Rouge car accident lawyers have a proven record of securing maximum compensation for injury victims. Let us help you.
Call (225) 999-1111 or visit our contact page to schedule a free consultation and discuss your claim with a car accident attorney today.