When you file a claim for gap insurance, the process is usually fairly straightforward. You will need to provide the insurance company with proof of the total loss of your vehicle, such as a police report or an insurance adjuster’s report. You will also need to provide proof of the amount you owe on the loan and the actual cash value of the car. Once the insurance company has all of the necessary information, they will usually process the claim within a few weeks.
One of the most famous examples of gap insurance in action is the case of the late actor Paul Walker. In 2013, Walker was killed in a car crash, and his estate was left with an outstanding loan on the car he was driving. The insurance company only paid out the car’s actual cash value, leaving the estate with a large gap in the loan amount. Fortunately, Walker had gap insurance, and the insurance company paid out the difference, covering the remaining balance of the loan.
Categories: Car Insurance, Gap Insurance, Paul Walker