I still owe money on my car and it’s gone! Is gap insurance going to help?

You’ve still got a lien on your car, and discover that it was recently stolen.  You’re probably wondering whether or not the gap insurance you were required to buy will be of any help in this instance?

Well, that answer depends entirely on the final disposition of your car.  If your stolen car was never recovered, and each insurance carrier may have a different requirement for deeming a car stolen, then your gap insurance is applicable and you should file a claim as soon as your primary insurance makes payment.

If your stolen car was recovered, but was damaged to the point where your insurance company is considering it a total loss, then your gap insurance would kick in.  Additionally, your insurance company would have to pay out the ACV (Actual Cash Value) to your lien holder in satisfaction of the comprehensive claim.  Once that happens, you can put in your gap claim with your gap insurer to pay the difference of your lien balance.

If, however, your stolen car was recovered and repaired under your comprehensive coverage, your gap insurance isn’t applicable.  In other words, you’re out of luck.  But hey, you did get your car back!

Tip:  If you haven’t already, take a few minutes to compare free auto insurance quotes online and determine if you could pay less for the coverage you need.