All you should have to do is file the proper paperwork and your gap insurance will pay off the difference between what your insurance company pays and what you owe.

Gap insurance is the best insurance anyone can buy when they finance a vehicle since they are almost always upside down the Instant they drive off the lot.

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In my case, I bought GAP insurance at the dealership, then a year later refinanced my vehicle for a better interest rate. What I didn’t know at the time was that GAP insurance follows the loan, not the person or vehicle. As soon as i refinanced the vehicle, my GAP insurance was automatically void.

My car was totaled in a accident a few months later, which is when I found this out. On the plus side, I was able to get a partial refund for the part of the GAP insurance I didn’t use. I just had to call my first loan company and get proof of when the loan was paid off. I was $1,200 upside down on my car, but I got $190 back from the GAP company to help.

As far as the jumping through hoops part, I remember that I had to fill out forms and submit all kinds of information to get a claim filed. It was after I did all this that I found out about it being void.

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