Quick question… So the insurance co finally paid out to the auto loan which it take 5-7 business days to clear then GAP insurance should take care of the rest. My car payment is due this week. Will I get that money back once GAP pays out since it was after it was a total loss or will just be part of the loan?
Auto claims and gap insurance
byu/OpportunityLow570 inInsurance
Posted by OpportunityLow570
1 Comment
Your insurance company likely has a 10 day payoff arrangement with the lienholder, and if you do have GAP coverage, they should be stepping in to cover the rest. That being said, it may take a little bit of time for the GAP process.
Get in touch with them to clarify. I’ve seen instances where GAP stepped in for payment from the moment the vehicle was declared a total loss, to instances where they only paid the $ amount owed from the moment their claim was initiated.
In short, it depends on the company providing GAP coverage. Don’t forget, you’ll also likely owe your lienholder for any applicable deductible on your policy.