Gap insurance can pay out if the balance on your car loan is larger than the amount your insurance company will pay if your car is totaled Written By Written by Insurance Staff Writer, WSJ | Buy Side ...

Scott Nyerges is a former senior editor and content strategist at U.S. News & World Report, where he led coverage of car insurance and other personal insurance lines. He's also served as a managing ...

If you owe more than the car is worth and your full coverage car insurance policy pays out the vehicle’s actual cash value after an accident, you may be stuck with an outstanding debt. But if you ...

Insurance companies pay the depreciated value of your car if it’s totaled or stolen, which might be less than your car loan balance. Gap insurance can cover the difference between the vehicle’s value ...