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Are you still covered by gap insurance if my loan is in default?

Are you still covered by gap insurance if my loan is in default?In many cases you would still be covered, but not usually for the amount by which your loan is in default and not for any extra charges and interest applicable to that default amount.

Does GAP Insurance cover uninsured vehicles in a wreck?

How can you have GAP insurance on an uninsured car? You have to have a basic policy to add this. actually the terms of my GAP insurance stipulate coverage of a total loss even without primary coverage. that astonished me, but it states “if there is no primary insurance at the time of loss, actual cash value shall mean the retail value of the vehicle…”. this raises some interesting issues about not carrying collision, but as GAP only covers the difference inbetween book value and loan balance under the condition of a total, and in NJ at least, to have a car loan you must carry collision, the point seems rather moot. maybe other states don’t require collision with a car loan [but I doubt it]…in any event, GAP wouldn’t cover anything less than a total loss. A little twist to your question. What is the reaction to the following question. Does GAP Insurance cover insured vehicles (comprehensive) in a total wreck, when the claim is denied?

If the lender has compelled insurance on a loan does it cover you if you get stopped?

NO, NO, and NO. It ONLY covers the LENDER for the amount owing oon your loan. if you would be nice enough to TOTAL the car, the lender would be glad. Good Luck and BE SAFE

Can a repo order be sent if the loan is not in default but you have no comprehensive and collision insurance?

Unluckily, yes. It was one of the agreements you made with them when you purchased the car. They check with the insurance companies from time to time- very likely every duo of weeks to make sure you have coverage. If you are involved in an accident, then they lose.

What can you do if your car is stolen and you still have a loan on the car but your insurance does not cover theft and they recover your car totaled?

Reaction .
YOU pay off the loan like you agreed to in the contract. You likely agreed to have ins. that covered theft also..
Response .
You should have had total coverage on a car with a loan on it. Sorry, you have to pay the loan off and now you own a totaled car! Comprehensive coverage isn’t that expensive and would have covered theft.

If you accidentally burn your car up due to cigarette falling on floor will your insurance and GAP cover your entire loan?

Yes.This is how it works…..Your insurance will cover up to the retail value of the car which may be a entire lot less than the loan amount left.The difference inbetween the retail value and the loan is what the gap covers, so you’ll be set.

Can you still get a student loan if you are in default on another loan and you just filed bankruptcy?

No. and Yes. The default on your prior student loan must be addressed and the loan rehabilitated before you’re eligible for more student loans. The bankruptcy would only affect you if you had a defaulted student loan that was written off in the bankruptcy. Otherwise, bankruptcy doesn’t prohibit you from applying and received federal student loans. Student loans are NOT automatically written off in bankruptcy and take extra steps with the courts.

If your vehicle get stolen and the auto insurance pays the blue book value would the gap insurance cover the rest of the payment on your car loan and what is the limit?

Response .
When a car is under lien and stolen/wrecked, the very first payee is ALWAYS the lienholder. You will receive nothing, and the lienholder gets reimbursed for the value of the car. Any outstanding would be your debt. Most insurers make deals with Lienholders to indemnify and lodge up the loan. Not always tho’. MAKE sure to ask the Insurance company how much was paid to lienholder, and ask for proof too!

Can a loan that was defaulted on 9 years ago still be sent to a collection agency?

ResponseSure. If you owe a debt and never paid it, you owe it forever. Collection agencies can attempt to collect forever. There ARE time thresholds on deeds that ordinarily pertain to collection. For example: The Fair Credit Reporting Act thresholds the reporting of bad debts on your credit report to 7 years from the month/year you last paid on time instantaneously prior to default. Whichever state law governs the debt places thresholds on how long you can be sued to recover money. Therefore, collection efforts on a 9-year old debt may be relatively “toothless”. There are also certain debts which are exempt from these boundaries. Federally assured student loans have no expiration date. Neither do unpaid tax liens or child support obligations. Those debts are also not dischargable in bankruptcy. So, if the debt in question is one of those, face the music and pay up, because waiting them out will not work. .
This must have been written by a collection agency. The statement is false if you owe a debt and never paid it you owe it for life. Wrong – you are protected according to certain state laws that limit the collection of debts except debts due the government.

You had no insurance and an uninsured driver hit you so now what should you do Will gap insurance cover?

Response .
I’m sorry to say that you are going to pay out of pocket for the harm to your car or attempt to sue the uninsured driver that hit you for the money. Gap insurance only covers the difference inbetween what you owe on the car and what your insurance paid you when your car was totalled. Since you don’t have any insurance your gap coverage is futile. Furthermore if the car wasn’t totalled in the accident then gap insurance wouldn’t come into play regardless.

If you default on your auto loan will you still owe money?

Reaction .
Yes. Not being able to pay a loan doesn’t absolve you from it. They may repossess the car if the situation calls for it, but you’ll still own any back payments.

How do you get another car loan or will you have to wait until the loan is closed if you have a loan on a car that was totaled and insurance and GAP insurance will pay the total loan balance?

Yes surely you can get another. I was having the same query so I searched for it on net and came across the site AutoFinance-EZ. Interest rates are determined by the actual lenders and are influenced by several factors, including the severity of credit problems, the amount of down payment, and the degree of credit risk. Your auto loan pro will explain these factors, and tell you exactly what your interest rate will be. .

Related video:

If you are not sated by the deal you are getting for a 2nd loan on your car, attempt looking for a payday loan.

Can a creditor garnish your federal taxes to cover a defaulted car loan?

Response .
Not Unless It Was Court Ordered. Child Support & Student Loans Can Be..
Reaction: .
If a garnishment order is sent by the courts to garnish your wages your employer will most likely obey with the order. If some nut bag creditor attempts to garnish your federal taxes it is unlikely the IRS will obey. As far as the IRS is worried is that is their money and they intend to keep it.

Are you still covered by gap insurance if my loan is in default?

What does gap insurance cover?

Gap coverage is intended to cover the difference inbetween what the car is worth and what is owed on the car. So if you owe 15,000 on a vehicle that has a value of 12,000, you should be covered.

Does gap insurance cover downpayment on a fresh vehicle?

GAP Insurance .
No, GAP insurance covers the “gap” inbetween what oyu owe on the vehicle, and the vehicle’s current market value. This is only for upside down loans. For example, you owe $20,000 on a car but it’s only worth $15,000 and you total it, the insurance will only pay the $15,000 since they only go u to current market value. Without GAP, you would be stuck with the remaining $Five,000 because once you sign that contract, that loan has to be paid no matter what. GAP would take care of the $Five,000 and you would be left with $0 in the end, but you wouldn’t owe money on a car you can no longer drive either.

What is loan default?

Reaction .
If you don’t pay a loan when due, you default on the loan.

Does gap insurance cover the remainder of a loan from a voluntary reposession of a vehicle?

Gap insurance does not cover repossession anything. It only covers if you wreck the car and owe more than it is worth.

What happens when you default on your loan and the insurance company pays out on your loan?

In most places the money goes to the BANK! Their name is on the title of the vehicle until you make all your payments and they sign a “release of lein”.

Your car is a total loss and pay off is about half of the amount of your loan you carried some from a prior car will your GAP insurance cover the majority or all of the remaining balance of the loan?

You will need to read your GAP insurance information. Like car insurance each plan is different. Some GAP insurance plans state they will pay 100% of the “resale” value. Others state 125% (meaning the current resale value of your car plus 25% above that). Others state 100% of “trade-in” value..
Bottom line – read the insurance plan document you got from the company, or visit the car dealership you bought the car from and pick up a pamphlet..
Good luck to you!

Does home owners insurance cover the theft of loaned items?

I loned my car once to a friend and while he was driving it, he wrecked into a pole. Since I had LOANED the car to him, the police said that they couldn’t do anything about it. But it doesn’t hurt to attempt to get the insurance to pay for the item. I hope ths adds some light on the subjct.

Why loans are defaulted?

Someone defaults on a loan when they fail to pay it back (or pay back a regular instalment). Normally this would either be because they can’t afford the payment, or they left behind to make the payment.

If you are in default on your student loan and you file taxes with your spouse can they still take your tax comebacks?

Yes, and an injured spouse can have their portion of the offset tax refund given back to them. Keep in mind that you are legally obligated to file your taxes even if you expect to have your refund offset. Contact the IRS for more information.

Does gap insurance cover a repossession?

Gap insurance only pays if the vehicle is totaled in an accident orstolen and not recovered. It does not cover the deficiency balanceafter a repossession sale.

If you refinance an auto loan with gap insurance within 30 days do you get a refund?

When you cancel your gap coverage, the company will give you your portion back in pro-rated funds, that you did not use.

If you have Gap insurance on your loan for your vechicle do you need to still have comp and collision or can you just insure yourself?

GAP insurance only covers the difference inbetween what your car is worth and what you owe. So if your car is only worth $8,000 and the balance on the loan is $Ten,000, GAP insurance will only pay the $Two,000 if your vehicle is determined to be a total loss by the insurance company. You still need to have physical harm coverage (Collision and Comprehensive) for the vehicle. If you don’t, your finance company will get their own coverage. It’s called compelled placed insurance. Your finance company will charge you for it, you will not get any benefits from it, and it will cost you more money than if you insured it yourself. You should also find out how much your GAP insurance covers. Some cover up to 150 percent of the value of your car, some only cover 115. Using the same numbers; if your vehicle is only worth $8,000 and your policy only covers up to 115 percent of the value, GAP insurance would only pay $1,200 and you would have to pay the remaining $800.

You have gap insurance and total coverage insurance but your beau totaled your car and he is not on your insurance will your insuances still cover your car?

You’ll have to seek out the fine print in your gap policy for details on that. In regards to your auto policy, utter coverage does not have anything to do with who is covered, but everthing to do with what is covered. Generally speaking harm to your car will be covered, minus your deductible, unless your bf is excluded from the policy. For the future it’s always a good idea to add drivers to your policy, even if it’s for a day, no sense in putting yourself in a position like this.

Are you still covered by gap insurance if my loan is in default?

If you make three consecutive payments on a defaulted car loan are you still considered in default?

Once a loan of any kind has defaulted, there is no switching it. If you mean that you missed one payment, this is not necessarily a defaulted account. Once the lender sells your debt or passes it to an agency to recover the amount possessed, then things are different. In the UK a missed payment or late payment will demonstrate on a credit search for six years. This can be eliminated if the total amount of the loan has been paid and you write to the credit agency to ask them to liquidate the information. Do not pay someone to do this, it costs nothing!

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Can you still get federal student loans if you have defaulted on other student loans that are now deferred?

If your loans are in a Deferment, then they were never in a Default status, they may have been delinquent. You are not eligible for Deferment while loans are Default. So to response your question, yes you are eligible to take out extra loans if you are in a Deferment.

If you default on a loan and the company charges off your debt can they still sue you?

Yes. They usually sell your debt to another company. This fresh company “usually” does not have all the info and does not have the signed documents needed to win in court. They can be very aggressive, but will only menace to take you to court. Some of this depends on the amount of the debt and how long it has been in collections. If they are calling you at work, ask for their mailing address and mail them and tell them to only contact you at home. If they do not go after this request, you can sue them.

My student loans have defaulted but i am still in school what should i do?

In the US, you will not be able to take out extra student loans next semester until you fix the default status. You can fix the default status and take out extra loans next semester with help. You can attempt to get help from your current lender, or you can get help from the company listed at the bottom of this text box.

Will gap insurance pay off the balance of your loan if your vehicle is totaled?

In California it is normally necessary for you to presently have comprehensive and collision coverage in place at the time of the accident for your gap insurance to take effect.

Can I still get help if my loans are in default?

If your loans are Federally Ensured Student Loans, like Stafford or Perkins loans, then yes there is help. This company specializes in helping people that are in default: www.defaultms.com

Does gap insurance cover theft?

Yes, But only if there is a gap in the final loss payment by the underlying auto insurance policy. If there is no underlying Auto Insurance theft coverage then the Gap Policy is null and void and no coverage would ensue.

If you total your car after your insurance is canceled will GAP insurance still protect you?

NO,, GAP Insurance is supposed to pay the difference inbetween what your Auto Policy paid and any remaining portion of your loss after the Auto Insurance Policy has paid it’s maximum..
If No Auto Insurance Policy is in Place providing comprehensive and collision coverage then your GAP Policy is Null and Void..
GAP coverage only pays in conjunction with your Auto Insurance Policy..
No Auto Insurance! No Gap Payment

Does gap insurance cover repossession in the state of NY?

No, GAP Insurance covers the difference inbetween the market value of the vehicle the insurance company pays you after a total loss and what you owe to the financial institution.

Will gap insurance covers repossession in the state of FL?

Gap insurance will not cover repossession in any state or territory of the US. Repossession is not a valid claim for insurance. In fact, it is possible your insurance could be cancelled as a result of the repossession, making you high risk.

Can 20 year old student loan default still be considered present default for home mortgage application?

Yes, there is no statute of limitations on student loan default for Federally Ensured student loans. You need to get the loans out of a default status. There are only Two ways to get out of default on your Federally Assured student loans. .
Contact your collection company or student loan servicer and request to come in the rehabilitation program. Most people qualify, but I have seen some refused when the default is over Ten years old. In the rehabilitation program, you will need to make 9-12 on-time payments in addition to your garnishment. After the 9-12 on-time payments, they should stop the garnishment, but you will stay in a default status until your Rehabed loans are sold to a fresh lender. In the past, that was an effortless process, but in these turbulent financial times, other lenders are not buying rehabed loans. So, with this option your loans will stay in a Default status for the forseeable future. .
The 2nd way you can get out of default and have your garnishment lifted is to consolidate your loans. These days very few Federal lenders will consolidate defaulted loans and your lender will most likely not release the loan for consolidation while in a garnishment stage. The good news is, there are a few companies out there that will help you get a garnishment lifted and find a Federal lender to consolidate the loans. One good example is Default Management Services, Inc. They are the cheapest I have seen and give a 100% money back ensure on their services. You can Google the company name to get the phone #. Ask for Doug.

Does your insurance still cover you if the roads are closed?

Too broad of a question to apply to everyone’s coverage but in general when you knowing into a hazardous situation of your own accord, you would be liable for any damages to your vehicle and any other vehicle that you may harm. There are some umbrella policies that covers you no matter what but those are utterly expensive because of the unknown risk. Now, for certain, if you proceed around a police or DOT closed barrier, you expose yourself to fines, fees, and penalties up to imprisonment depending on the locale so best leave them alone. If you live on a road that has been closed, you should contact the local police — use their regular number not 911 — and ask to speak to an officer on duty and tell them that you live on a road that is closed and if there is an route to avoid the closed road or if you just have to shelter in place until the road reopens. If it is an emergency situation, they would rather come to you than you attempt to get to them.

Are you still covered by gap insurance if my loan is in default?

A student loan has been in default will collection agency still garnish tax comeback?

If it was a federal student loan, then yes, the collections agency could take your income tax come back money. If it was a non-federal loan, then they would not be able. Secondly, federal student loans are can not be discharged, the US always gets paid even when laws are created for private businesses that disallow the same right of collections.

Gap insurance is from the auto loan or your insurance on the car?

GAP (ensured asset protection) auto insurance coverage is one the most necessary, yet least understood insurance products available to vehicle owners. It is generally purchased through the auto dealership or leasing company at the time of the initial purchase or lease. It’s purpose is ordinary: If your car is totaled, gap insurance will cover the difference inbetween what your insurance company says your car is worth (actual cash value) and what you still owe on your loan or lease.

Does gap insurance cover if your behind on car payments?

Unluckily, no. What gap coverage does is pay the balance on your car loan if your car is totaled and the insurance payment is not enough to pay off the balance of your loan. Fairly often our vehicles depreciate swifter than we can pay them off. Insurance only pays the depreciated (blue book) value, so sometimes what you will get from your insusrance company doesn’t pay off the loan.

If you get a loan from a credit union and they put gap insurance in it can you get a refund?

It depends. If you paid it all upfront in cash for the life of the loan and you trade the car in early you might be entitled to a petite refund. If the gap insurance is included in the car payment then no. There is no refund at that time, because you are paying only for what you use.

Car totaled insurance value car at 16000 and loan amt is 12400 can you use your gap insurance to pay off car loan?

If they gave you 16000 on the car, you would not need gap insurance since your loan amount is 12400.

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What does gap auto insurance cover?

Physical harm coverage on an auto policy says that the insurance company has the option of paying to repair, substitute, or pay the actual cash value of the vehicle. In the case where the harm to a vehicle’s cost to repair is more than the ACV of the vehicle the vehicle is totalled and the company will pay the ACV of the vehicle. Sometimes when you buy a fresh vehicle without much or any downpayment you quickly get “upside down” in the loan. As the value of the car depreciates, the loan balance doesn’t fall almost as swift. For the very first duo of years you owe more than the value of the vehicle. The insurance company has nothing to do with auto loan. GAP insurance was created to cover the difference in the ACV of the vehicle and the loan payoff. You can buy GAP insurance from the finance company or bank that financed the vehicle or from your insurance company. Purchasing from the insurance is much less expensive and you can drop the coverage once the loan balance falls below the value of the vehicle.

Does the lender get mortgage insurance to cover the loan and you get the homeowners?

No, that’s not how it works. Mortgage insurance is to cover you defaulting on the loan, and you’re expected to pay it. Homeowner’s insurance covers the home itself in case of accidents. If they pay off the value of the home because it was totally ruined, you’re still responsible for the loan before you get whatever’s left over.

Does gap insurance still apply if your car is paid off?

It will depend on the type of gap insurance you have. Finance gap insurance would expire as there is no finance to cover but come back to invoice and vehicle replacement would still carry on until the end of the policy or a claim is made.

Does gap insurance cover a death?

No. If a car is determined to be a total loss as a result of a collision, GAP insurance pays the difference inbetween what the collision coverage pays as the actual cash value of the car and the outstanding loan balance.

Can you still get financial aid if you are in default on a student loan?

In the United States, you cannot receive Federal student aid if you are in default on a Federal student loan. If you have defaulted on a private loan, this will depend upon where you are attempting to get extra student aid from.

Does your liability auto insurance cover you in a loaned vehicle?

No. Liability insurance goes after the vehicle so the person who possesses the vehicle you are borrowing needs to make sure that they have insurance and also needs to add you as a driver on his or her policy. You also need to make sure that this is done because if you drive the vehicle and get stopped you will get the ticket for driving without insurance. If you have an accident and are not added as a driver his or her insurance company may deny the coverage for material misrepresentation and guess who will be sued by the person you hit? Both of you will be sued and both will be responsible. Insurance companies to do not like vehicles to be loaned to unknown drivers.

Does gap insurance cover a vehicle that’s insured when in accident?

No, you are misstating what GAP coverage is. GAP insurance is a separate type of insurance that you can purchase as part of your finance agreement or on your individual auto insurance. What GAP does is pay the difference in what your insurance company pays and what is actually owed on the finance account for the vehicle. This is especially significant when a vehicle is newer. An auto insurance policy pays either the cost of repair, replacement of the vehicle, or actual cash value of the vehicle at the insurance companies option. If the vehicle is totaled they pay ACV which on a fairly fresh vehicle is less than the purchase price. Purchasing GAP insurance is usually far less expensive when purchased from your insurance company than the finance company.

What does gap insurance provide in the early years of one’s loan?

Gap insurance refers to insurance which covers the gap inbetween fresh car replacement and the current value of the car. It eliminates the risk of a car insurer not paying out enough in the event of a loss.

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