It would depend upon the terms of your GAP insurance if the policy would still be in effect and pay out if you are behind in your car payments.

GAP insurance polices differ in their terms so read completely through the terms of your policy to see if missing or getting behind in payments would allow them to deny a claim if your car is declared a total loss before you catch up. It could be that if missing a loan payment would be enough to allow the claim to be denied according to the wording of your GAP policy.

Or it could be that your gap insurer would pay out but not the total balance of your loan since you were behind and the monies that you were past due on would have to be paid by you instead of them.

When a carrier offers GAP insurance it typically has this set as the first eligibility guideline: Eligibility only extends to a policy providing comprehensive and collision coverage. 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

To find out for certain if your gap insurance would pay out anything if your car would be totaled out in a covered loss while you are behind in loan payments you should check with your gap insurer and read carefully through your gap insurance policy documents.