What happens if you wreck a vehicle and then buy gap ins?

Fred C

Sure, he can go ahead and buy it, likely on-line is the easy way.
The problem is, as soon as he makes a claim, he will be guilty of insurance fraud. It will be painfully obvious that the date of the accident is before the date of any policy he purchases. There is no way of hiding or changing that.
Insurance companies prosecute fraud vigorously.
Insurance is not for events that have already happened. You can't up the value of your house on a policy after the fire, either.
Tell the little crook-to-be to wise up.

oklatom

The exact same thing that would happen if you were in a wreck without insurance, and then went out and bought insurance.

They will look at the date and time the insurance went into effect, then they will look at the date and time of the wreck, and tell you you are NOT covered since the insurance was purchased after the accident.

If you could do it that way, no one would have insurance until after the fact. Your grandson is mistaken in his assessment of the situation.

Added: Those of you having him in jail for driving without insurance, go back and read the question again. It says nothing about NO insurance, the question is can he add gap insurance after the fact.

Been there

Can't do it. Think about buying life ins. after the person is dead.

Luna & Lawnboy

He is incorrect. You cannot purchase insurance of any kind post incident.

shjf47

Any policy written after the date of the accident will not cover anything that happened before the policy was written. There may be an exception. If the effective date of the Gap policy is the same as the effective date of the regular policy, they may cover you. However, the effective date of the Gap policy should be the date it was purchased.

snowboarder

Kay H

You can't buy insurance after the fact and if he tries to do this its called insurance fraud and its stupid to try and he won't get away with it. He's also looking at driving without insurance,thats a minimum 6 hundred dollar fine in some states plus automatic revocation of your license for 6 months. He's in some deep trouble thats probably going to take 2500 dollars with fines and a decent lawyer. Remember don't let him try to buy insurance because it can be 5 to 10 years in prison for fraud,insurance companys are cracking down hard on people who are dumb enough to try and rip them off,he's going to learn a high price lesson.

Chickie

The insurance has to be in effect at the time the accident occurred. if he manages to get a gap ins policy backdated to comply with this (which no gap ins co in their right mind would do), and then they coincidentally get a claim during the backdated period, they'd start a fraud investigation immediately. He goofed by not getting the gap ins and just learned an expensive lesson. that's life.

â™¥ Uwish â™¥

Then you would be purchasing gap insurance for nothing.

It would not cover the accident as you did not have it at the time of the accident.

You don't get what you don't pay for

dumbhilljack

First you get a ticket or fine for not having ins. then you get one for the wreck then one for having a forged papers and with all that a little time to think about your screw up with time in jail

Anonimo

I was explained how this works about 6 years ago.

I believe this is how it works:
1. car got into accident
2. car totaled and will be paid fair market valued instead of repair
3. Fair market value is $10,000
4. Car loan residue is $15,000
5. Car insurance pays $10,000
6. Car loan residue is $15,000-$10,000 = $5,000
7. Gap insurance pays that $5,000 to car loan company

Hope it helps.

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