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What do I do about my loan payments while I wait for my gap insurance payout?
I filed a gap insurance claim five months ago and I'm still waiting for the payout. There have been issues between my bank and the gap insurance company. My car was a total loss and I can't drive it. I still owe $1,500 on my loan and I'm now being sent to collections for it. What can I do?
Emily Maracle · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“The best thing you can do is to start paying your loan again. Even though you are waiting for your
gap insurance
claim to be processed, you are still responsible for your loan. To prevent it from impacting your credit any further, you’ll want to begin making payments again. Since the loan is being sent to collections, reach out to the collections company. Let them know about the situation and set up a payment plan. You should also let your lender know that you will be resuming payments.
Your gap insurance claim should cover the amount of the loan when the car was totaled. You may be reimbursed for the additional payments that you will be making now.
It is important to remember that gap insurance normally does not cover interest or fees, so you may still be required to pay any late fees associated with your loan.
“
View full answer
- Gregory R.
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