Ask an Agent
Have a question? We're here to help.
Ask an agent for free
Question

Will gap insurance pay out if I buy the salvaged vehicle from the insurance company?

The ($14,000 value) car was totaled in an accident. I owe more on the loan ($16,000) but have gap insurance. Insurance is saying the value is $14,000, and that I can buy the salvage title for $11,000. Will gap insurance pay $2,000 or not if I accept the salvage offer?

Feb 23, 2020 Madison, WI

Answer
Author profile picture

Kristine Lee

Insurance Analyst

Credentials
  • Licensed Insurance Agent — Property and Casualty
  • 4+ years of Experience in the Insurance Industry

Kristine is a licensed insurance agent who joined The Zebra in 2019 as an in-house content researcher and writer. Before joining The Zebra, she was a…

Your gap coverage should still cover the $2,000 owed on the loan regardless of what happens after that. I would definitely check directly with your insurance company to make sure there is no stipulation that prevents this if you choose to buy back the salvage title.

If you have any questions, feel free to ask.

Ask an Agent
Have a question? We're here to help.
Ask an agent for free

Insurance is complicated, but it doesn't have to be.

The Zebra searches all of the top insurance companies, in one place, so you can compare the cost and coverage you need to protect your car, home and other property.

Step 1: Tell us a little about yourself

Choose an insurance product and enter your zip code to get started.

Step 2: Sip your coffee while we find the best quotes

Enter the necessary information and then sit back while we find quotes from 100 top insurance carriers.

Icon Fill Form

Step 3: Compare your quotes

Compare quotes side-by-side to find the right match for you, whether it's home, auto, or more.

Icon Agent

Step 4: Let our agents do the hard work for you

Once you pick your policy, our agents are here to get you over the finish line. Then just relax and enjoy your savings.

Compare insurance rates today!

Location pin icon
No junk mail. No spam calls. Free quotes.

Related Questions

Other people are also asking...

A vehicle that was being towed was totaled

I'm sorry to hear your car was totaled. This is what I would recommend.File a police report. Although I do not have all the details, it sounds like this was a hit-and-run situation. A police report will be important for step 3.Check your policy to see what coverage your mother has.If you have …
Aug 27, 2018 Gardena, CA

If the repair costs more than the car without an accident, will it still get totaled?

Your insurance company will never get involved in helping you repair your vehicle if there was no accident or other loss that caused the damage. Since there was no accident, you are on the hook for paying for your vehicle's repairs. You may want to consider selling it and salvaging any remaini…
Jan 26, 2020 Wiggins, CO

Is it ever possible to buy retroactive car insurance?

Unfortunately, if you did not have collisioncoverage on the vehicle at the time of the accident, your damages will not be covered. Insurance cannot be backdated. Liabilitycoverage will only cover the damages you cause to others. You will be responsible for the loan. I would contact the finance comp…
Dec 27, 2018 Chandler, AZ

What happens if you total a rental car?

The answer depends on your insurance coverage. If you do not have insurance you will likely be responsible for the cost of the vehicle. If you do have comprehensive or collision coverage, check with your insurance company. The company may cover the damages.An insurance company may extend your colli…
Dec 16, 2018 Tampa, FL