Auto Loans confused

[matt6837]

I have an auto loan through wfs now wachovia. I have been making the loan payment amounts on the vehicle in full. The vehicle was repossessed this week because I had let the insurance lapse almost a year ago for 2 weeks, and they say they had put on a gap insurance policy. They are now claiming my payments should be more than double what the loan documents were for due to the additional insurance policy they purchased (apparently for 1 year) and are terminating the loan? Is this legal?

 

[garykittrell68]

You are required to carry full-coverage insurance on financed cars......However, G.A.P insurance does not give you that kind of coverage. What G.A.P does is cover the diffrence of what an insurance company would pay on a totaled car verses what you owe....For example....Your car blue book is $5,000..........Your loan amount is $7,000.......You total the car then G.A.P would pay $2,000, and the insurance co would pay $5,000.
What you should have asked them to do was put V.S.I on the car (Venders single interest) That would have covered the loan in the event of an accedent. You should consult an attorney for this....I don't believe they had the right to repo your car without giving you some options first....

Good luck

Gary