If you have a loan on a vehicle like I did, make sure you add "gap protection" onto your full coverage policy. It was never offered to me by my insurance, and I sure wish they would have.
In January of 2012, I purchased a 2004 GMC Envoy XUV from an individual whom did owner financing, and allowed me to make payments. He required $1500 as a down payment, and $350 due by the 7th of every month. Since my credit is not good, I cannot get traditional financing.
On February 21st, I hit an icy patch on the road after dropping my 3 year old off at preschool. I was going uphill, and didn't have any trouble going down the hill 10 minutes before. I had made 1 payment, plus the $1500 down payment.
Altogether it cost $13,000 minus $1850, leaving $11,150. The insurance company declared it a total loss. They said the cash value of it was $8500, and repairs would cost $8400. They ended up paying out almost $9,000. But I'm left paying the balance, and also without a vehicle since the insurance paid to the actual owner. If I would have had gap coverage it would have paid off the entire loan.
By Alicia from Lakeville, OH
