Reader’s Question:
Does my gap insurance still apply in Fargo, North Dakota if I still owe on my car and it is stolen?
Miller
Fargo, ND
If your vehicle is stolen but recovered and can be repaired then your gap insurance would not be applied in this situation. If instead your vehicle was stolen and stolen, not recovered and is extensively damaged so that it will not be repaired then your insurance carrier should find it to be total loss and your gap insurance should then be in effect.
Your vehicle does need to be found a total loss and actual cash value (ACV) paid out by your primary insurance company for gap insurance to apply. So if your vehicle is stolen it would need to be declared a total loss and have actual cash value paid out on it. You would not be able to collect on your gap insurance policy only if the vehicle was stolen and recovered and going to be repaired by your insurance company.
If your vehicle has been stolen and your comprehensive coverage claim has been accepted so that the car has been declared a total loss, then you should contact your gap insurance carrier to make a car insurance claim in Fargo, North Dakota. Once your comprehensive coverage pays out actual cash value for your stolen car then your gap coverage should kick in and pay the balance of your loan that is still due.