“When you sign a finance agreement for a vehicle, you are also agreeing to the terms and conditions of the loan. Unfortunately, since you made late payments and incurred fees and interest from those payments, your gap insurance
isn’t required to pay those fees.
You can reach out to your lender to get an exact understanding of how your late payments affect your final balance. If the total does equal the remaining $1,500 left on your loan after your gap insurance payment, you’ll be required to pay that out of pocket.
If there is a discrepancy and you can provide proof, you may be able to negotiate with the gap insurance company.
While this is a stressful situation, the best thing you can do is reach out to your lender and get clarification. In the future, you’ll at least know how late payments can affect your gap insurance claim.