Who does GAP cover?

Question

If I let someone drive my car and they wreck it, will the GAP still be honored as long as insurance covers the car?

I'm worried about letting anyone use my car if not...

Answer 1

If you are really worried about it, I would ask your insurance company.  No matter what anyone here tells you, they are the only one who knows what will really happen.

Answer 2

gap insurance is just going to cover the difference in what your car is worth and what you owe on it. Yes it will cover it if some one else is driving...as long as your primary insurance company pays out.

Answer 3

GAP will cover the payoff of your loan if your comp or collision pays a total loss (less your ded - GAP doesn't pay your deductible).

Now, GAP from a dealer is expensive.  But, you can usually add GAP to your auto policy (I have yet to see it cost more than $40 per year, usually under $30 per year).  My policy includes it for free.  Anyway, I have seen GAP (on the insurance policy) pay twice in the last year so it is worth it and it DOES pay.  Also, the GAP (or loan/lease coverage) gets paid normally at the same time the collision gets paid, done deal, nothing extra to do...

Answer 4

#1 rule - don't let people drive your car.

The rest does not matter if you follow rule #1.

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More than one person asked about problems AFTER their "friend" drove their car into an accident.

Good Luck.

Answer 5

Answer from a General Insurance Agent

Who does it Cover? It's supposed to cover the Finance company in the event that you have total loss and your own Auto Insurance does not pay the full balance of the Loan.

Gap Insurance covers the Lienholder. It is "NOT Auto Insurance", It is basically "Finance Company Insurance".

GAP Policies are explicit in that they will NOT pay for a loss unless that loss is already fully covered by your own Comprehensive or Collision Auto Insurance. (Go Figure)

If the person you loaned your car too has a covered loss in your vehicle then "Yes", GAP is valid. If it turns out that that driver is not covered, then "NO", GAP coverage will not invoke and they will deny your claim.

Remember, GAP will only pay if your own Auto Insurance Policy has already paid. (Does that sound confusing enough yet?)

Unfortunately GAP insurance is a real scam. It's usually sold by auto dealerships and finance officers who have no Insurance License or Training of any kind.

It's like pulling teeth to get GAP coverage to pay anything at all. If you do get them to pay, they will only do so after all other real Auto Insurance Policies involved have already been exhausted and paid their maximum limits.

It's best just to have a good Comprehensive Auto Insurance Policy.

Take Care and Good Luck