“Gap insurance provides coverage if you owe more on your loan than the actual cash value of your car. This can happen for a variety of reasons, but it’s normally due to vehicle depreciation. It is specifically designed for when your vehicle is marked a total loss.
If the settlement amount that your insurance company gave you is less than what you owe on your loan, your gap insurance should cover that difference. Every carrier or lender has different terms and conditions for gap insurance, so it’s important to reach out to them directly for clarification.
There may also be a time limit on when you can file a gap insurance claim, so be sure to reach out as soon as possible. “