[Trump Girl Kit Cat]

I am confused the reason we carry car insurance is for this reason WHY in the hell is the insurance company not paying the car off???

[know.your.why]

I am confused the reason we carry car insurance is for this reason WHY in the hell is the insurance company not paying the car off???

Thats not the problem. What IS the problem is the fact that I've paid about $20K in equity into this car that I was planning on buying at the end of the lease for $14K and now that the car is totalled the LEASING company doesnt want just $14K they want $20K.

[CodeToad]

“I am confused the reason we carry car insurance is for this reason WHY in the hell is the insurance company not paying the car off???”

Insurance companies pay one of two things depending on what policy you buy: Either the value of the car at the time of the accident or the replacement cost to provide another one of similar features and condition regardless of cost. This is where gap insurance comes into play in the first case. You may owe more than the car is worth, and gap insurance covers that amount.

Gap insurance is highly recommended for vehicles that will depreciate fast or for long term loans or leases where the paydown is slower than the depreciation.