Car accidents are a reality of life when you live in Las Vegas, Nevada. If you have just bought the brand new car of your dreams and were just rear-ended in a car accident, you may be dealing with personal injuries, as well as the damage to your car. If your brand new car is totaled, you may owe more on your car, than it is worth.
When the other driver’s insurance company is trying to determine what to pay for your car, they do not look at what you owe on it. Instead, the insurance company looks at what your car is actually worth. Kelly Blue Values are a good place to start, to figure out what your car is actually worth.
The question your Las Vegas car accident Attorney gets asked, is what happens when the amount owed on the car is more than the value of their car. The answer is GAP insurance. GAP Insurance, is a shorthand name for Guaranteed Auto Protection. GAP insurance covers the difference between the value of your car and how much you still owe on the financing you took out on the car.
When you are in a car accident in Las Vegas and your loan amount is higher than the value of your car, the only avenue for compensation is if you purchased GAP insurance when you bought the car. They would have offered you GAP insurance when you met with the financing person at the place you purchased the car. Some finance companies actually require you to have GAP insurance. If you are not sure if you have GAP insurance, you can talk to your finance company and ask them if you have it.
If you have GAP insurance, then you can seek the difference of the value of your car and amount owed. Also, in some GAP policies, they cover your deductible. So, if you have just bought or are planning to buy a brand new car with financing, you may want to consider buying GAP insurance, in case you are in a car accident and your car is totaled.
Next time, we will discuss the overall Court system for Las Vegas car accident cases.