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Car Insurance Question  Can gap insurance play are a part in an accident that does not result in the car being totaled but yet damage was done to the vehicle?

No, normally gap insurance does not play a part in an accident claim if the car was not declared a total loss by the insurance company involved.

Gap insurance pays the difference between the balance of your loan and the actual cash value paid out in a settlement for a "totaled" vehicle. If the car is only damaged and totaled out by insurance then the ACV is not paid out and thus there is not a difference for gap insurance to fill in and pay out.

If a car was damaged in an accident then you should use your collision coverage to place a claim for the cost of the repairs.

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This car insurance question was asked on 5/20/2007
This auto insurance answer was last updated on 5/23/2007
James requested this car insurance solution.
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