What is GAP insurance?

What is GAP insurance?

GAP Insurance

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After an accident, if your car is totaled, your collision insurance will pay you the fair market value of your car. If the amount left on your car loan is higher than the fair market value of your vehicle, gap insurance will make up this difference. GAP insurance pays you the difference between the property damage and the amount left on your loan.

When do I get GAP Insurance?

You will buy the GAP insurance at the car dealer when you purchase your car. You will usually pay a lump-sum premium at the time of the purchase. The Dealer will give you a GAP ADDENDUM, which means it amends your financial agreement with the Dealer. Keep this GAP ADDENDUM with your important papers as it will have the name of the program administrator and its contact information. When you are in a car wreck and discover that the insurance payment is too low to cover your loan, you will need to contact the program administrator to open a claim file for you. You will need your GAP Addendum number, which is usually at the top of the page. If you have lost the paperwork, call the Dealer as they will often keep copies and can provide you copies at no charge.

How do I open a GAP Insurance Claim?

You then call the GAP insurance program administrator and give them your GAP ADDENDUM number and the VIN of your vehicle, and they will start the process. Once you have a claim initiated, the administrator will send you an email with a checklist of documents you will need to complete the gap claim. They will send the same information to your lender.

What will I need to get the GAP Insurance Claim completed?

To complete the GAP insurance claim, you will usually need the GAP Contract, a copy of the loan agreement, proof of mileage at the time of purchase, which is on the loan agreement, or your purchase agreement, and you will need a complete loan payment history. You will also need a copy of the service contract which can be provided by the dealership. Finally, you will need copies of the insurance settlement check, proof of the actual cash value at the time of the accident, and a police report.

We are here to help.

We are providing you this information about gap insurance free because our goal is to provide you with clear direction so you will know how to handle your auto accident claim. Look around out website and you will find answers to most of your questions, but if not give us a call for a free, over-the-phone conference at 785-370-0001, you can also fill out our Free Case Evaluation Form, and we will follow up with you within two business days.

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