Will insurance pay off your loan if your car is totaled? Most people believe if their vehicle is totaled or stolen, their primary insurance will pay of their loan/lease balance. Think again!
If your vehicle is totaled or stolen, your primary insurance carrier will usually pay only the actual cash value (current market value) of your vehicle less your deductible. This amount could be substantially lower than your loan/lease balance. The difference could mean thousands of dollars out of your pocket.
Why buy GAP?
- It pays off your loan/lease balance should your automobile be stolen or damaged and is a total loss
- Clears your loan balance allowing you to start fresh with a new vehicle purchase
- Can be included as a small addition to your monthly loan payment
Talk with your TelComm CU Loan Officer for more information.