How to File a Claim With Gap Insurance

Gap insurance provides a financial safeguard for individuals who finance or lease a vehicle. It covers the difference between the vehicle’s actual cash value (ACV) at the time of a total loss or theft and the remaining balance on the auto loan or lease. This coverage helps prevent consumers from owing money on a vehicle they no longer possess.

Understanding When to File

A gap insurance claim becomes relevant when your vehicle is declared a total loss by your primary auto insurer or if it is stolen and unrecovered. Gap insurance applies only after your primary auto insurance claim has been processed. Your primary insurer first determines the vehicle’s actual cash value (ACV) and issues a settlement based on that valuation. Gap insurance then covers the remaining outstanding loan or lease balance that exceeds this ACV payout.

Gathering Required Information and Documents

Filing a gap insurance claim necessitates gathering a specific set of documents and information. Your gap insurance policy number and the provider’s contact information are fundamental, as these will be needed to initiate the claim.

Details from your primary auto insurance policy are also essential. This includes your primary policy number, the claim number assigned to your total loss or theft, and contact information for the adjuster handling your case. The primary auto insurer’s settlement letter or statement is a particularly important document. This letter verifies the total loss declaration and details the actual cash value (ACV) payout amount, which is the basis for the gap insurance calculation.

You will also need documents related to your vehicle’s financing. This includes your original vehicle purchase agreement or lease agreement, which shows the initial loan or lease balance and terms. A current loan or lease payoff statement from your lender or lessor is also necessary. This statement provides the exact outstanding balance on your account, including principal, accrued interest, and any applicable fees. You can typically obtain this from your loan servicer online, by phone, or through a written request.

If the incident involved a theft or accident, a copy of the official police report is required. Any repair estimates or appraisals relevant to the total loss determination may also be requested. Your vehicle identification number (VIN) and personal identification information will be needed to verify your ownership and identity.

Submitting and Following Up on Your Claim

After gathering all necessary information and documents, the next step involves formally submitting your gap insurance claim. You should contact your gap insurance provider directly to initiate the claim, which can often be done via phone, online portal, or email. Many providers offer online portals where you can upload documents and complete claim forms.

During the submission process, you will typically need to fill out specific claim forms provided by the gap insurer. These forms will require you to input the information you have already gathered, such as details of the incident, your primary insurance settlement, and your loan information. Once submitted, it is advisable to obtain a claim number or an email confirmation as proof of submission.

Tracking the progress of your claim is important, as gap insurance claims can take several weeks to process, often ranging from four to eight weeks. Many providers offer online portals or dedicated claims representatives to help you monitor the status. The insurer may request additional information or clarification during this period. Promptly responding to these requests can help avoid delays in processing. It is important to continue making your regular loan or lease payments while the claim is being processed to avoid negative credit reporting. Once the claim is approved, the payout from the gap insurer typically goes directly to your lender to pay off the remaining balance on your loan or lease.