How do gap insurance and new car replacement coverage work on my totaled Chevy?
My brand-new Chevy Equinox was just totaled in an accident. I have both gap insurance and new car replacement coverage through my insurance company. How do they work? Which one should I use?
“New car replacement coverage typically allows you to replace your totaled car with a comparable or similar make and model. This means you’d still have a car loan, but it would be as if your vehicle was never totaled.
Gap insurance only covers the difference between what you owe on your loan and the actual cash value of your vehicle. Since you had a new Equinox, you could owe more on your vehicle than it is worth after depreciation. Gap insurance will cover this.
Depending on your situation and loan status, you may not qualify for gap insurance. You should reach out to your insurance company to see which coverage type would apply to your situation. “
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