Davis Law Group Receives Seattle Business Magazine’s ‘Best Companies to Work For’ Award Learn More
Davis Law Group Receives Seattle Business Magazine’s ‘Best Companies to Work For’ Award Learn More
If you are involved in a car accident and your car is totaled, your auto insurance should pay you the actual cash value of the vehicle. But what happens if you have a car loan and you owe more than the car is worth? This is where auto gap insurance can provide a huge financial benefit.
Keep reading below to learn all the details about auto gap insurance, including how it works and what it covers.
Washington requires drivers in the state to maintain a minimum level of liability insurance coverage. This type of insurance pays for any damages that you may cause, such as property damage or injuries.
Although not required, drivers in Washington may choose to purchase several other types of insurance coverage, such as:
Gap insurance is usually purchased at the time you buy your vehicle. If you take out a loan to purchase your case, your lender may offer you gap coverage. This type of insurance pays for the difference between the amount you owe on the car and the actual cash value of the vehicle.
For instance, imagine you purchase a vehicle and take out a loan for $50,000. A few months later, you wreck your car, and the insurance determines that the vehicle is a total loss. You still owe $45,000 on the vehicle, but it is currently only worth $35,000. Your gap insurance would pay the $10,000 difference between the value of the vehicle and the amount you owe on the loan.
Although gap coverage will pay for the difference between your loan amount and the value of your vehicle, there are some things that it will not pay for.
Gap coverage will not cover:
Having gap insurance can be extremely beneficial after a serious accident. Otherwise, you could be stuck paying back a substantial amount of money for a vehicle that you cannot even drive. Additionally, you might be missing time from work after an accident if you sustained any injuries, and this can make the financial repercussions of your accident even more challenging.
After a car accident, you may sustain many different types of damages. While your gap insurance coverage can help pay off your car loan, you may be able to recover additional damages from the at-fault driver through an insurance claim or personal injury lawsuit.
However, getting the compensation you are owed without the help of an experienced personal injury lawyer can be difficult.
You will need to prove that the other driver was at fault, and you will need to prove the amount of your damages.
Proving fault typically requires proving negligence, and that is done by showing:
There are many different types of evidence that may be used to prove your case, such as photos, video surveillance, witness testimony, medical records, and more.
If you successfully prove your case, you may be entitled to recover both economic and non-economic damages. This includes compensation for your financial losses as well as your pain and suffering.
Some common examples of damages available after a car accident include:
An experienced Seattle car accident lawyer can help you determine all the damages available in your case. They can also help you put together your case so that you have the best chance of getting maximum compensation for your losses.
If you’ve been injured in Seattle, WA, and need legal assistance, contact Davis Law Group Car Accident and Personal Injury Lawyers. Contact our legal team and schedule a free consultation with a car accident lawyer today. We proudly serve King County in Washington and its surrounding areas. Visit our law office at:
Davis Law Group Car Accident and Personal Injury Lawyers
2101 4th Ave 1030 Seattle, WA 98121
(206) 727 4000
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