The Shoulder
The Shoulder
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Property damagespry-mole-255

GAP insurance paid off my totaled car — is there leftover money coming back to me?

Still kind of in shock that this all happened so fast, but here's where I'm at.

Bought a used SUV back in the spring — put a decent chunk down and financed the rest through my credit union. Was making payments no problem. Then about two months ago some guy ran a red light and T-boned me. Car is a complete loss. First accident I've ever been in. Fun times.

So my insurance paid out the actual cash value of the vehicle, which was less than what I still owed on the loan (classic gap situation, I know). Good news is I had GAP coverage, so that policy kicked in and covered the difference between what insurance paid and what was left on the loan.

Here's the thing though — when I sit down and do the math myself, it looks like between the ACV payout AND the GAP payout, the total comes out to slightly more than what I actually owed the lender at the time of the accident.

Like, not a huge amount, but not nothing either.

Questions:

  • Does that overage get sent back to me, or does the lender just pocket it?
  • Does it go back to the GAP insurer instead?
  • Is my math even right, or am I missing some fee or interest adjustment that'll eat up that difference?

I've called my credit union once and honestly the person I spoke to wasn't super clear. Thinking about calling back and asking more specifically. Just wanted to see if anyone here has been through this before and knows how it actually plays out in practice.

13replies

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13 replies

  • 16
    clever-finch-903

    From the insurer side — GAP claims are calculated against the payoff amount the lender provides on a specific date, which includes any accrued interest up to that day. So your 'overage' might shrink a little once that per-diem interest is factored in. That said, if there genuinely is a surplus after the loan is zeroed out, it belongs to you, not the lender and not the GAP company. Lenders are supposed to refund it. Some do it automatically, some you have to chase. Chase it.

  • 14
    gentle-wolf-784

    A couple of things worth knowing: first, get the official payoff statement from your credit union in writing — that's the number that actually matters, not your own running tally (not because you're wrong, just because lenders calculate daily interest and your statement balance might be slightly different). Second, request written confirmation from both your auto insurer and the GAP company showing exactly what each paid and to whom. Having all three documents makes it really easy to see if there's an overage and gives you something concrete to hand the credit union when you ask for a refund.

    • 14
      clever-stoat-252

      Don't assume anyone will just volunteer to send you that money. Lenders aren't always proactive about cutting refund checks when a loan closes out. Keep calling, keep asking, and put requests in writing via email so you have a paper trail.

    • 0
      curious-commuter890

      Wish I had seen this a month ago — would have saved me a lot of stress.

  • 12
    curious-crow-001

    Quick question — when you say 'what I owed,' are you using your last monthly statement balance or did you call and get an actual payoff quote? Those two numbers can be surprisingly different because of how interest accrues daily on most auto loans. I'd nail that down first before assuming there's definitely an overage, just so you're not surprised.

    • 1
      careful-survivor447

      Curious whether you did this on your own or had help with it.

    • 8
      thankful-co-pilot238

      Following up on this — any update on how it turned out?

  • 9
    patient-dove-248

    Yes — this happened to me almost exactly. The GAP payout covered my remaining balance and there was a small amount left over. My lender actually mailed me a check for the difference a few weeks after everything was settled. Definitely call your credit union back and ask them directly: 'If the total payoffs exceed my remaining principal and interest, what happens to the surplus?' That specific question got me a straight answer when the first call didn't.

    • 6
      patient-dreamer274

      Going through something similar right now. Did following up actually move the needle for you?

  • 9
    hearty-lynx-679

    Ugh, dealing with all of this after already going through an accident sounds exhausting. I'm sorry you're having to fight for what sounds like your own money. Hope you get it sorted out quickly — you deserve one less thing to stress about.

    • 16
      steady-mole-308

      Short answer: yes, overage money is yours. Long answer: you'll probably have to ask for it more than once. Get the payoff figure in writing, compare it to the two payout amounts in writing, and if the math shows a surplus, send the credit union a written request referencing those exact numbers. Paper trail wins every time with lenders.

    • 4
      grounded-late-shift712

      Took me three tries but they finally budged. Don't give up.

    • 8
      curious-dreamer732

      Did you have to escalate, or did they come around after the first ask?