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Originally Posted by xcalibr
Correct, if it's not totalled --if it is, the insurance will settle with the bank, and give me the value of the car minus whatever they used to settle with the bank. Insurance will go up because they already determined I'm at fault. There were no other cars, only the road and myself to blame. I'm not sure if I have to pay a deductable if it's totalled though.
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Sorry to hear about that, that totally sucks!!
Gap insurance is a must-have if you are financing a brand new car. Basically, "gap" insurance covers the gap between the actual value of your car at the time of the accident and the amount you still owe the finance company.
Let's say you paid about $40k for your brand new E90 and financed the total amount. If your car is totalled (which in this case it is) and you don't have gap insurance, your insurance company will only pay you the actual value of the car at the time of the accident (it will have depreciated by then), while you still owe the lender the full amount (the $40k) you financed. If you have gap insurance, it will cover the difference.
Gap insurance is really cheap too, it is only costing me $8 for six months.