Does gap insurance still apply if I don't have full coverage on my financed vehicle?

I got into an at-fault accident and didn't have full coverage on my financed vehicle. The dealership says I won't be able to use my gap coverage because I didn't have the right amount of insurance. If I still owe more money on my loan after the claim is paid out, would my gap insurance apply?

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Emily Maracle
Answered on Apr 21, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
“Having the correct coverage on your vehicle is essential. Most lenders require that financed vehicles have both collision coverage and comprehensive coverage.
If you didn’t have full-coverage insurance at the time of the accident, your gap insurance won’t apply. Most terms and conditions for gap insurance and loans require that the vehicle owner maintain the proper coverages.
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