How Do I File A Gap Insurance Claim?

How do I contact gap insurance?

Please contact us at 866-493-0184 between the hours of 8AM-6PM Central Time for specific questions on your GAP addendum/policy..

How long does a gap claim take?

It could take anywhere between five and 45 days for your auto insurer to pay out gap insurance after a claim. The exact amount of time varies based on the complexity of your claim and the regulations in your state. Typically, these payments are sent straight from your insurance company to your lienholder or lessor.

Will gap insurance help me get a new car?

It’s actually an acronym that stands for “Guaranteed Auto Protection.” The guarantee is that in the event of a total loss, GAP insurance will cover your financial obligations, and leave you free to start hunting for a new car, bike, scooter or whatever you choose as your replacement vehicle.

How does a totaled car affect my credit?

Car accidents, even those that result in a financed car being totaled, won’t directly impact your credit scores. … While an accident won’t harm your credit scores, it can affect your auto insurance premium, even if your car is totaled after an accident.

Does Gap Insurance cover trade in value?

Gap insurance does not cover your car’s depreciation (or how much you’re upside-down on your car loan) if you want to “trade up” for a more expensive vehicle. … However, if you want to trade in your vehicle, gap insurance can’t help you with the negative equity you have in the Kia.

What is the max gap insurance will pay?

25 percentGap Insurance and Leases Lease/loan insurance pays the difference between what the insurer pays and what you still owe on your lease. However, it’s important to note that unlike gap insurance, lease/loan insurance has a limit on how much it will pay. Generally, this amount is 25 percent of the vehicle’s cash value.

How long does it take to get a refund for gap insurance?

4 to 6 weeksRefunds After Cancellation In most cases, a gap insurance refund will take 4 to 6 weeks to arrive after submitting the appropriate paperwork to the insurance company.

How much does gap insurance usually cover?

Gap insurance only fills the gap between the actual cash value of a car at the time of a claim and the current amount still owed on a car loan. The specific gap policy covers, for instance, $4,000 on a vehicle assessed at $16,000, but with $20,000 still to be paid on the loan.

Does gap cover a blown engine?

The short answer is no, gap insurance does not pay for a mechanical breakdown like a seized engine or broken transmission. Gap insurance pays the difference between your car’s value and what you owe on it if the vehicle is totaled in a crash or stolen.

What happens when you total a car that’s being financed?

If your car is totaled near the end of your financing agreement, you likely owe less on the vehicle than the car’s fair market value (FMV). In that case, the insurance company should send the settlement check to your auto lender. Your lender deducts the amount you owe, and you receive a check for the difference.

How much is a gap refund?

For example, if you paid $1,000 for 36 months of insurance coverage, the monthly amount would be $27.78. If you paid the car off at the end of 24 months, you would have 12 months remaining, which means a refund of $333.36 for the time you didn’t use the coverage.

Should I buy gap insurance from dealership?

The bottom line is that your auto dealer may be more than willing to sell you this type of coverage, but that doesn’t mean you necessarily need it. Gap insurance is only necessary if you owe more on the car than it is worth. If you’re putting a sizable amount down on your purchase, you may not need gap coverage at all.

Do I still have to make payments on a totaled car with gap insurance?

Unfortunately, an insurance company totaling a vehicle is not required to pay the car loan balance in a settlement. The insurance company is only obligated to pay the Actual Cash Value (ACV) of the vehicle—the amount you will need to purchase a comparable used vehicle.

What gap insurance does not cover?

Gap insurance does not cover: car payments in case of financial hardship, job loss, disability or death. repairs to your vehicle. the value of your car or balance of a loan if your car is repossessed.

Does Gap Insurance send you a check?

The check for the payoff balance will then be issued to the finance company. Is GAP Insurance Worth the money? No one wants to total their vehicle, but if you have a total loss in a financed car you want to be sure that you have GAP insurance.

What documents are needed for gap insurance claim?

Gap Claim ChecklistINSURANCE. SETTLEMENT. Provide proof of payment by the Insurance Company. … SETTLEMENT. BREAKDOWN. The Settlement Breakdown details how the settlement was calculated using the vehicle’s base value in addition to any applicable taxes, fees, adjustments, deductible, etc.EVALUATION. REPORT. … LOSS. INFORMATION.

How Does Gap Insurance work if car is totaled?

Gap insurance is an optional car insurance coverage that helps pay off your auto loan if your car is totaled or stolen and you owe more than the car’s depreciated value. … Gap insurance helps pay the gap between the depreciated value of your car and what you still owe on the car.

Who pays gap insurance refund?

For instance, if a vehicle is financed for 48 months but is paid off in 24 months, two years’ worth of premium charges are due back to the insured as GAP coverage is normally paid for in advance. In addition, a car owner who sells or refinances a vehicle also is owed a refund.

Can Gap insurance refuse to pay?

There are instances when gap coverage won’t pay out. For example, if the claim for the totaled or stolen car is denied for some reason, or if your car insurance coverage lapsed, your gap insurance won’t come into play.

Does gap cover stolen car?

If you have gap coverage, it will pay for the difference between the actual value of the car and what you have left to pay on your car loan. As long as your gap insurance policy covers loss in the case of theft, your stolen vehicle will be eligible for coverage under your gap insurance.