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QuestionInsurance 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?

AnswerAuto Insurance Answer

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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