I’ve heard gap insurance doesn’t cover everything… What situations would it not pay out? I want to make sure I’m not caught off guard if I ever need to use it.
Yeah, gap insurance only pays if your car is a total loss. If it’s just damage that can be repaired, they won’t cover it. Also, it won’t pay if your policy has lapsed or if you’re behind on payments.
WilliamGarcia said:
Yeah, gap insurance only pays if your car is a total loss. If it’s just damage that can be repaired, they won’t cover it. Also, it won’t pay if your policy has lapsed or if you’re behind on payments.
Good to know. So, if my car isn’t totaled, I’m out of luck? That’s rough.
@Ray
Exactly. It only kicks in when your car is beyond repair and you owe more than it’s worth.
Also, keep in mind that gap insurance won’t cover your deductible unless your policy specifically says so. I learned that the hard way!
Mackenzie said:
Also, keep in mind that gap insurance won’t cover your deductible unless your policy specifically says so. I learned that the hard way!
Ugh, I had no idea about that. So you’re still out of pocket for the deductible even with gap insurance?
@Ren
Yup, unless your policy includes deductible coverage, you’re responsible for that amount.
Another thing to watch out for is if you owe a lot more than your car is worth. Some policies have a claim limit, so if you’re way upside down on your loan, gap insurance might not cover the full amount.
@Sam
Wow, that’s something I didn’t think about. I’ll have to check my policy and see if there’s a limit.
Yeah, I’ve heard some policies cap how much they’ll pay, so it’s good to review the fine print. And like others said, make sure you’re up to date on payments or the policy could be canceled.
Asher said:
Yeah, I’ve heard some policies cap how much they’ll pay, so it’s good to review the fine print. And like others said, make sure you’re up to date on payments or the policy could be canceled.
Good call. I’ll make sure to check my policy and stay on top of payments. Thanks for the heads up!
If you’re ever denied a claim, you can appeal it. Just make sure to have all your documentation ready to go. You might be able to get them to reconsider if everything else checks out.
Blake said:
If you’re ever denied a claim, you can appeal it. Just make sure to have all your documentation ready to go. You might be able to get them to reconsider if everything else checks out.
Thanks for the tip. Hopefully, it never comes to that, but good to know I have options.