Services

PriceProtect™

Compare Car Insurance

Refinance Car Loan

DriveShield™

Drive Well, Earn Perks

GarageGuard™

Get Service Reminders

Insurance

Car Insurance

Compare Car Insurance with Jerry

2024 Car insurance quotes

Cheap car insurance

Best car insurance companies

Shopping for car insurance

Is Jerry a legitimate insurance broker?

Jerry’s Expert Advice

What factors affect car insurance rates?

How does car insurance work?

Types of car insurance

Full coverage car insurance

Car Insurance Estimates

Car insurance by car

Car insurance by location

Home & Renters Insurance

Home Insurance

Compare home insurance quotes

Home & auto insurance quotes

Renters Insurance

Compare renters insurance quotes

Repairs

Car Repair Estimates

Repair Estimates for Popular Services

Oil change cost estimate

Brake pad replacement cost estimate

Battery replacement cost estimate

Timing belt replacement cost estimate

Wheel bearing replacement cost estimate

Spark plugs replacement cost estimate

Rotate tires cost estimate

Transmission fluid service cost estimate

See all 300+ service estimates

Advice

Read Car Content

Browse Jerry Car Advice

How do I know if a mechanic is taking too long?

How to put antifreeze in your car?

What do you do if your car makes a noise?

Read 5,000+ more car advice articles

Check Out Expert Car QnA

Why does my car squeal when I drive?

Do driving warnings go on your record?

How long can you go past your oil change?

How much below MSRP is a good deal?

Learn from 30,000+ more questions

Learn About How We Create Content

Our Editorial Standards

Our Editorial Review Board

Jerry Data & Research

Recent Studies

State of the American Driver (2023)

Memorial Day (2023)

Android vs Iphone (2023)

Auto repairs (2023)

Auto loans study (2023)

Read all recent studies

Comprehensive Data Reports

Jerry Annual Data Report (2023)

Read all data reports

About

MenuIcon

Can negative equity impact gap insurance payments?

I still owe $4,000 on my car loan after my insurance payout. My gap insurance is denying my claim because I have negative equity on my car. How can I get them to pay off the remaining balance?

Emily Maracle · Updated on May 3, 2021

Reviewed by Shannon Martin, Licensed Insurance Agent.

“Every loan and

policy has different terms and conditions. There is most likely a clause in your gap insurance policy that states they will only cover the balance of your current vehicle.

If you rolled a prior car loan balance into your current one, this is considered to be negative equity. If you didn’t have gap insurance or had different gap insurance coverage on your prior vehicle, your current coverage won’t cover your remaining balance.

The best thing you can do is make sure their calculations are correct. Look into your finance paperwork and find out the total amount you owed prior to buying your car. You’ll also need to look up the terms and conditions of your gap insurance and loan.

If you find any discrepancies, you may be able to negotiate with your gap insurance company to get a claim approved. “

View full answer

WHY YOU CAN TRUST JERRY

Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.

Join 4M+ members in lowering their car insurance

Find insurance savings

You Might Also Be Interested

When Does Gap Insurance Not Pay?

Gap insurance does not pay for car damages if your vehicle is not deemed a total loss or if you have not kept up on your payments.

Jacqulyn Graber

How Long Does Gap Insurance Last?

Gap insurance can last as long as you have an outstanding car loan, but you won’t usually need it for the entire term length of the loan—learn more here!

Drew Waterstreet

Everything You Need to Know About Honda Gap Insurance

Guaranteed Auto Protection (GAP) insurance can protect your leased or financed Honda if it’s deemed a “total loss.”

Read Advice From Car Experts At Jerry

Home Equity Loans vs. Mortgages: Everything You Need to Know

Understanding the difference between a home equity loan vs. a mortgage can be tricky—both represent financial investment in a property, but the specifics vary.

Kathryn Mae Kurlychek

How to Recognize (and Survive) Roaches in Florida

From the colossal American cockroach to the sneaky German roach, here’s how you can identify and destroy roaches in Florida.

Homeowners Insurance in Texas

Texas homeowners insurance includes protection against fire, wind, theft, vandalism, and more. You may need separate coverage for hurricanes and earthquakes.

What Others Are Asking

Does Nebraska require a front license plate?

I’m moving to Omaha for a job, and I’m pretty excited about the move! However, I’m a bit nervous about registering my car, as I’ve never done it in a different state. Do I need to get a front license plate in Nebraska?

What is the Colorado blood alcohol limit?

I was thinking about taking a road trip to Colorado to try some beers at local craft breweries. While I never drive drunk, I want to know what the limit is for the state. What’s the blood alcohol limit in Colorado?

Does State Farm renters insurance cover dog bites?

Since I have a pet, my landlord wants me to get renters insurance that covers dog bites. Does State Farm renters insurance cover dog bites?

Browse All Questions

Browse More Content

Car Repair Resources

Insurance for Your Car

Insurance in Your State

Insurance In Your City

Easiest way to compare and buy car insurance

No long forms

No spam or unwanted phone calls

Quotes from top insurance companies

Find insurance savings

Car Insurance by Make

Car Insurance by State

Car Repair by Service

AC Compressor Replacement Cost

Battery Replacement Cost

Fuel Injector Replacement Cost

Fuel Pump Replacement Cost

Ignition Coil Replacement Cost

Oil Change Cost

Oil Pan Replacement Cost

Car Insurance by Company

Aspire Advantage

Assurance America

National General