Many people finance their new car purchase and don't realize if something happens their insurance company may not pay off the full amount of their loan.
That's why another policy, called Gap Insurance, was created.
When Dustin Carter bought a new car three years ago, the dealer sold him Gap insurance.
He was told that would make up the difference between any insurance payment and the amount he owed on the car, should the car be totaled.
So Carter says he was surprised when he tried to cash in his policy and learned that wasn't the case.
DUSTIN CARTER: "They will pay the difference in between what you currently owe on the vehicle to the lender and the difference between that and the insurance company's payment and that you walk away from that point."
The Gap policy cost Carter $495-- and he needed it after his car was wrecked when he swerved to avoid a deer.
CARTER: "The car was completely totalled. I have some pictures of the car. The driver's side was ok as far as the top goes but it was all destroyed on the side and the top was crushed."
The insurance company paid a little over $8000, but he owed the bank a lot more.
CARTER: "The car was only a couple of years old and at that point in time I still owed $3,623 on the car once insurance covered their end."
After filing a claim with his Gap insurance he received only $2100-- a thousand less than needed.
CARTER: "They said they will cover the part of the vehicle, the cash value of the vehicle but that's what they cover. And when I purchased my vehicle I had my taxes and title, my fees, all that stuff rolled into the payment of the car. so I really didn't put any money out front."
Carter was also charged for being late on a car payment, even though he quickly made it up.
CARTER: "It just stinks. I'm really unhappy with it. Its really put me in financial bind. I had to borrow money from family and friends to try to make ends meet."
Carter is appealing the compensation amount.
I have contacted the Gap insurance company and officials tell me they're looking into the case.
You can get Gap insurance by contacting your own auto insurance company-- most offer Gap insurance for less than $10 every 6 months.
Clearly, all Gap insurance is not alike in cost or coverage. So, it pays to carefully check it out before buying.
