How to Make a GAP Insurance Claim

If your car is totaled or stolen, the right paperwork can help ensure you don't have to pay.

Andy Stonehouse | 

Jul 3, 2024 | 3 min read

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Guaranteed Asset Protection (GAP) insurance, which covers the difference between a vehicle's current value and the amount remaining on a lease or loan, can be a financial blessing for drivers who've been in a major accident or had their vehicle stolen.

Making a claim on GAP insurance and receiving that money requires the correct documentation. As with any paperwork-heavy undertaking, some patience and quickly following up on any communication will likely make the process less stressful.

The Collision Claim Is Filed First

In the case of a total loss of a vehicle, GAP insurance claims are typically made after a traditional comprehensive or collision insurance claim has been approved by an insurance company. Those initial funds will be paid to your loan or lease holder.

Once that primary claim has been completed and paid out, the GAP insurance company will work to figure out any remaining difference between the actual cash value of your car — the value of your vehicle at the time of the accident or theft — and the remaining lease payments.

Generally, this amount is also paid directly to the loan or lease holder. In the case of an accident where another driver is at fault, you will likely not have to pay your deductible on either primary or GAP insurance.

Be Sure You Have the Proper Documentation

Dealers or primary insurance companies may not automatically file a GAP insurance claim, so you might have to initiate the process yourself. You can start by contacting the GAP insurance company or the dealer to see how to initiate your claim. You'll need the proper documentation to help prove the difference between the amount you owe on your loan or lease and the vehicle's actual cash value.

Most important are your insurance company's settlement statement and a copy of the settlement check, both of which will demonstrate the vehicle's actual cash value and how much money was sent by the insurance company to the lender or leasing company.

You will also need a copy of your original loan or lease contract, including all the original financing terms, as well as a copy of your complete loan history, which will show all the charges and payments you have made, plus your final outstanding balance.

Don't forget to include a copy of the police report, which will help explain the date and details of the accident or when and where the car was stolen.

A GAP Insurance Claim May Take Time

The process may be easier if your GAP insurance is with the same company that holds your comprehensive or collision coverage. However, you'll still probably need to submit that full pile of paperwork, either in person with an insurance agent or via email, faxed documents, or old-fashioned mail.

A GAP insurance claim can take upwards of a month to be processed, with the average claim taking four to six weeks. You may get things resolved more quickly by acting immediately on any requests for additional documentation, as well as following up with the insurance company on the status of the claim.

To avoid any negative credit reporting, it's important to remember that you are also required to continue making your payments while you wait out the process. These will likely still count toward the balance owed on your loan or lease.

After the claim is processed, funds will typically go directly to help pay off the remaining balance on your totaled vehicle. If you're interested in starting a new loan or lease, keeping a file with all your insurance claim letters and receipts to show that you've paid off the previous contract is helpful.