Discussions

Can anyone explain exactly how gap insurance works in the event of total loss of vehicle? Our vehicle was written off a few weeks ago and I've settled on a price with mpi! I purchased gap insurance when I financed the car thankfully! My question is does gap cover the remainder of the existing loan? Or do they replace your vehicle with one of equal value (in the form of a cheque)?  
So confused on this subject and google is telling me a lot of different things! All I care about is my remaining loan to be taken care of. Anything above that is a bonus!!  
Thanks so much ebrandon

It pays the difference between what you get from mpi and what you owe. Hence the word 'gap' insurance.  
I believe purchase price insurance is only available on cars under 3 years old.  
 
Edited by CG42, 2017-04-08 18:44:44

That's really good to know and exactly what I thought, but then I got confused while trying to google the correct answer. My car is a 2013 that I bought in August of 13! Sadly only had 30k for km on it. Sad to see it go but at least the remainder of my  
Loan should be covered! Mpi certainly didn't think it was worth anything more than 10k and after a few tries I decided to just settle and end this battle! Uhg