The insurance company’s compensation is lower than what I owe on my car. What do I do?
Check your automobile policy to see if you have gap insurance. Gap insurance will cover the difference in what you owe and the given compensation so you don’t have to pay out of pocket for a car you no longer have. If you are making payments on your car and your vehicle is totaled in a car accident, you will be compensated for the value of your vehicle before it was in the accident. We all know cars depreciate once you drive off the lot, so you will probably be given less money than what you owe on the car. It may be worth it to invest in gap insurance as a precaution!