Will GAP insurance help prevent repossession?

Answer by  blkconservative (46)

Yes. You could very well owe more on your vehicle than what it is really worth after appraisal. For example, if your vehicle loan payoff is $10,000 and the Kelly Blue value is $6000, you will still owe $4000 in order to payoff your car loan. Gap insurance will make up for the $4000 gap. You owe nothing.

Answer by  Rubberchicken (819)

No. It will not cover repossession; it covers in you instances where your vehicle is a total loss and you owe more on the loan than the car is worth.

Answer by  Roland27 (16334)

The only thing that is going to help prevent repossession is paying your bills and paying them on time. If you can't afford the payments look into getting them lowered.