(800) 253-1482When Does Gap Insurance Not Pay in Missouri?
Summary: Gap insurance covers only total losses, not repairs, liability, maintenance, or mechanical issues. There are many reasons gap insurance won’t pay claims in Missouri, and payouts often cap at 125% of the car’s value, leaving you responsible for extra loan balances. Claims may be denied for lapsed policies, previous loan debt, or intentional or pre-existing damage. Military members can still purchase gap insurance despite past MLA-related confusion. Estimated Read Time: 4 mins
Gap insurance covers your loan if your car is totaled or stolen, but some claims may be denied. Learn more about the times when gap insurance does not pay in Missouri, how to avoid these issues, and tips to ensure you're approved when filing a claim.
Reasons Gap Insurance Won’t Pay Your Claim in Missouri
Auto insurance in Missouri includes gap coverage, which protects the balance of your loan after an accident. However, claims may be denied if premiums aren’t up to date, if fraud occurs, if the policy lapses, or if the vehicle isn’t totaled.
Gap insurance also often has waiting periods before coverage begins, leaving you unprotected if a loss occurs during that time.
Your Vehicle Isn’t Totaled
If your vehicle isn’t totaled, your gap insurance policy will not provide compensation. You must suffer a total loss, meaning it’s more expensive to fix your vehicle than it is to replace it after an accident, for a successful claim.
Claims Unrelated to Balance Shortfalls
Gap insurance protects against loan or lease balance shortfalls but doesn’t cover liability, collision, comprehensive, maintenance, extended warranties, wear and tear, or mechanical failures.
The bottom line is while gap coverage is great for protecting your finances, other claims will require corresponding auto insurance coverage to be a part of your policy to avoid lapses.
Your Policy Limits Are Too Low
Most gap insurance policies cap payouts at 125% of your car’s actual cash value (ACV), leaving you to cover any remaining loan balance.
If prior damage lowers your car's value without totaling it, gap insurance won’t make up the difference if the car is later totaled.
This is one prime example of why it’s important to revisit your coverage needs every six to twelve months and ensure the policy limits you have in place are adequate for your protection.
Your Policy Lapses
Gap insurance won’t cover missed payments, fees, or policy lapses due to disability, death, injury, or unemployment.
If you are going to miss your payment, contact your insurer. However, staying current on your premiums is your best course of option, though coverage may still apply if cancellation occurs after an accident.
Money Owed on Another Loan
If you have an existing loan or lease balance, you can roll it into your new vehicle’s policy, however, gap insurance won’t cover your negative equity balance if you file a claim under normal circumstances.
Some exceptions might exist but they are not just that, exceptions, and should not be relied upon.
Intentional/Previous Damage
Gap insurance won’t cover intentional damage, fraud, or pre-existing damage.
Filing a fraudulent claim can result in denied coverage, policy cancellation, and difficulty obtaining future insurance policies.
To avoid issues, review your policy carefully to understand its coverage and exclusions.
Can Gap Insurance Deny Claims in Missouri?
You can have a gap insurance claim in Missouri denied for mechanical failures, wear and tear, or losses excluded by standard auto policies.
Claims may also be denied for driving under the influence or if policy limits are reached.
Review your policy details carefully and consult your insurer to understand coverage and avoid unexpected denials.
How Do You File a Claim With Gap Insurance in Missouri?
To file a gap insurance claim, reach out to your provider by phone, online, or in person but make sure you have important documents ready to complete the process.
These include things like your insurance settlement statement, loan or lease contract, settlement check, loan history, police report, and original sales agreement.
For easier claims and possible discounts, consider getting gap insurance from the same company that handles your comprehensive coverage.
Missouri drivers can save money by comparing different insurance carriers to find the best coverage and service.
If you’d like to avoid issues with your gap insurance claims not being paid, save money on premiums, and enroll with a trusted carrying offering personalized coverage, compare carriers using the auto insurance quote below or ask an agent today:
