Question: If a car is totaled in an accident can I take the money from my GAP insurance and put it towards getting the car repaired?

September 21, 2005

Hello Tony

My son was in an accident where the insurance company considered the car (01 Ford Escort LE) totaled. He has GAP insurance.

The insurance company gave him two options:

1. He can have the insurance company total the car, in which case they will give him a check and take the car. His GAP insurance will cover the difference and his loan is paid off - but now he has to start over looking for another car.

2. He can have it fixed (the insurance co will give him a check) and continue on.

The question is: Would GAP insurance only kick in if he takes option 1 or is there any way he can have it fixed while utilizing his GAP ins.

Thank you,

Pam

Answer:

Hi Pam,

The GAP will only pay off if you choose option 1, and that's assuming there is still a loan balance left after the insurance company pays their end.

If the car is damaged badly enough for the insurance company to consider it a total loss your son's best bet is to forget it and get a new car. An Escort can't take much of a hit without there being serious structural damage. I wouldn't trust it after being repaired.

For more information about what GAP insurance is and why it is so important to have go to: The Truth About Gap Insurance.

All my very best...

Tony Iorio