Are there instances when gap insurance won't pay out?
I want to add gap insurance to my car insurance policy, but I'm not sure what all it covers. Are there any times when gap insurance wouldn't pay out?
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Answered on Jul 21, 2021
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“Gap insurance will only pay out if you total your car and there’s a difference between the actual cash value (ACV) of the car and the remaining loan balance.
Gap insurance won’t pay out if:
- the car breaks down from wear and tear
- the car can still be reasonably repaired
- you fail to make monthly payments on your gap insurance”
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