Gap and Liability

[Cran Berry]

Will gap still cover the difference if the vehicle only has liability?

 

[adjusterjack]

Depends on the terms and conditions of the GAP policy.

However, it would appear that the answer is yes for THIS policy:

GAP Amount means the difference between the primary insurance carrier’s physical damage insurance payment for a Loss or Unrecovered Theft or, if uninsured, the Vehicle’s Actual Cash Value, and the Unpaid Net Balance of the installment loan.

Emphasis mine.

https://www.navyfederal.org/pdf/publications/NFCU_23A.pdf

I'm guessing that the way it works is if your car's ACV is $5000 and your loan balance is $6000, the GAP insurance would pay $1000 and you'd still be on the hook for the $5000.

Read your GAP policy to see if it says the same.

 

[Cran Berry]

Depends on the terms and conditions of the GAP policy.

However, it would appear that the answer is yes for THIS policy:



Emphasis mine.

https://www.navyfederal.org/pdf/publications/NFCU_23A.pdf

I'm guessing that the way it works is if your car's ACV is $5000 and your loan balance is $6000, the GAP insurance would pay $1000 and you'd still be on the hook for the $5000.

Read your GAP policy to see if it says the same.[/QUOTE


Thank you. I will look at, it's just packed away in storage.

 

[Cran Berry]

Thank you for replying. I'll have to take a look at the policy, it's just packed away in storage.