A Florida driver's loan balance exceeded the value of their totaled Ford Explorer, creating a financial headache after a flood. Water submerged the SUV to its dashboard, making it a total loss.
Here's what to know
The owner, who identified their location as Melbourne, described the predicament in a Reddit post.
Geico sent its catastrophe team to inspect the Explorer and determined that it was totaled. The adjuster told them the insurer would send payment for the vehicle's value directly to the finance company.
"I owe a lot more than it is worth," the original poster revealed.
The owner also reported that Premier Dealer Services provided their GAP coverage, which covers the difference between an insurance settlement and an outstanding vehicle loan.
With a replacement vehicle to find, the driver wanted to know whether to retain auto coverage, how long the GAP process might take, and who was responsible for starting the claim.
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More background
Whether any debt would remain was a question of numbers, one commenter explained. The settlement and the GAP coverage limit needed to be weighed against the outstanding loan balance.
Another big thing that commenters were adamant about was not canceling insurance.
"He definitely should keep insurance on the vehicle until he purchases a new one," a user wrote. "He can reduce it to just liability to save money, but having a lapse in your insurance for even one day can and does cost you more in the long run."
Fuel costs were another concern as the owner considered a replacement. The flooded SUV was their third Explorer, and they wanted another with a 2.3-liter engine after getting disappointing gas mileage with their 3.5-liter one.
"It was used and I got really screwed interest and price wise, but I was in a really bad credit situation when I bought it," they said. "Thankfully that has gotten so much better."
What can be done?
Commenters recommended contacting Premier Dealer Services directly to begin the GAP process.
"You need to look at how much you owe, how much GAP covers, and if that will be enough to satisfy the loan or leave you still owing," one wrote. "As far as purchasing a new car, that is going to be more dependent upon your personal finances."
The original poster popped in with more updates on their situation.
"I am very lucky," they said in a follow-up. "I got the settlement from Geico and there's a $4,000 difference from the ACV and my payoff. We are also so lucky that all we lost was my car. My neighbor lost so much in her house."
For their next car, they said they wanted something under $25,000 with three rows and a manageable down payment.
"Im not sure about financing yet," they said. "I don't want a bunch of hard inquiries until I've found what I want and I'm ready to go."
Where can I learn more?
Flooding is threatening cars and homes throughout the state.
• In Fort Lauderdale, king tides shut part of A1A, with salt water threatening cars.
• In Astor, neighbors moved cars to higher ground as river flooding pushed into homes.
• Homeowners face gaps in flood coverage, with most homeowners policies excluding flood damage.
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