Drunk Driving Insurance Chicago Illinois IL
Reader’s Question:
I live in Chicago, Illinois and I am curious if a car is in forfeiture with a state due to a DUI conviction will GAP insurance cover the loan amount?
Alexia
Chicago, IL
No, a forfeiture of your car to the state due to a DUI conviction will not normally be covered by your GAP insurance. GAP insurance pays the balance left on a loan after a car’s actual cash value (ACV) has been paid out by a primary insurance company after a covered loss; such as the car being totaled out in a car accident or being stolen and declared a total loss.
A forfeiture or seizure by your state’s law enforcement of your car would not count as a covered loss by either your primary insurance provider or your GAP insurance carrier. If your state’s laws allow your car to be seized by the state after a DUI conviction then this would not be a covered loss in which a car insurance provider in Chicago, IL would pay out actual cash value to your (or your lien holder) for the car and thus the difference (or gap) between ACV and your loan balance would not be there for GAP insurance to pay. But instead your whole loan balance would be due. Many states auction or sell off cars they obtained from seizures or forfeitures in which case your lien holder may get some money for your vehicle from the state. Likely this will not be enough to pay off what you owe and leaving you to pay off the remaining loan balance. If your car was forfeited to the state due to a DUI conviction, then you should contact the courts involved in your case to find out what they do with seized vehicles and if there will be money going to your lien holder from a sale. You then should also speak with your lien holder regarding this situation to see what balance you will have left and how to go about paying it off.
Tags: auto insurance, DUI insurance
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