Money rolled over from a previous trade in or another vehicle's loan would not normally be covered by your Gap insurance. Gap insurance is there to fill in the gap between the actual cash value of your car and the balance of the loan, but of the loan amount that is for that car not that car plus a loss on another vehicle. Gap insurance is not there to pay for other items you may have financed into the loan such as other previous loan amounts, warranties, etc.

When a carrier offers GAP insurance it typically notes that coverage applies only in the event of a premature termination of the loan or lease due to a total loss covered under comprehensive or collision. Coverage does not apply to overdue payments, penalty charges assessed for excessive mileage or excessive wear and tear, etc.

Notable general GAP exclusions include:

• Overdue lease/loan payments
• Financial penalties imposed under a lease for excessive use
• Security deposits not refunded by the lessor
• Costs for extended warranties, credit life insurance, or other insurance purchased with the loan or lease
• Amounts deducted by the primary insurer for wear and tear, prior damage, towing, and storage
• Carry-over balances from previous loans or leases
• Equipment added to the car by the buyer, meaning that only factory-installed equipment is covered

So no, your gap insurance policy would not pay off the whole $26,000 loan (or what was left of it after you had made payments) if the vehicle was totaled out.It would only pay on the part of the loan dealing with the actual vehicle that was totaled out and not on any carry over balance from your truck loan that you rolled into your new financing.

To find out for certain if your gap insurance would pay out anything for the rollover of the cost of the previous loan that was added to the price of your car you should check with your specific Gap insurer and also read carefully through your Gap insurance policy documents.