If I didn’t know I have GAP insurance, are they required to pay me if I paid off the outstanding balance of what I owed the financing company?
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If I didn’t know I have GAP insurance, are they required to pay me if I paid off the outstanding balance of what I owed the financing company?
Asked on April 30, 2009 under Insurance Law, New York
Answers:
L.M., Member, California Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
That depends. GAP insurance (Guaranteed Auto Protection) covers you for the difference between your car's value, and what you owe on it if you have an accident that totals the car, or the vehicle is stolen. If you are making payments on the vehicle, and you owe more than its value, your gap insurance will cover you for the difference. You didn't say why you are paying off the outstanding balance. If it is following a total loss accident or theft, then yes, your GAP insurance should take care of the difference. If you didn't know you had it, contact the GAP insurance provider and make a claim. Be sure you have the paperwork from the payoff and from your accident or theft to provide them with the necessary proof.
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