How does it work exactly? I got into a crash in November and I bought gap insurance when I bought my car and went with Tesla insurance (never again going through them) I thought the gap would kick in as soon as the lender was told by my insurance that it was totaled and was even asked by the insurance rep from Tesla how I would want it sent to me but I got an email saying that they just straight paid out the lender I called the lender and they said that I would have to call the gap insurance people from when I bought my car but won’t that just go to the lender? This is my first car and first that I got wrecked in so everything is confusing
Posted by RonadRum
1 Comment
You’ve been told exactly how it works. Your main auto insurance paid the actual cash value of the car, since it was a total loss. They paid it directly to the lender, since you had a loan on the car. That’s how it works.
And then yes, it’s your responsibility to contact your GAP coverage provider and open a claim with them. It’s a separate coverage. That’s why it’s not automatic with your car insurance. The GAP coverage will then pay the remaining loan balance, up to the GAP policy limits. That will also go directly to the lender. And until you get this GAP claim taken care of, you still have a loan balance on that car that you still need to make payments on. That loan isn’t zero’d out until you run the GAP claim.