GAP Insurance Assistance
Hi everyone, I’m looking for some information about GAP insurance. My 2025 Honda Civic was stolen this morning, and I’m just getting familiar with this kind of coverage. I only bought the car 9 days ago, and it has approximately 286 miles on it. I’m also concerned about whether this situation will impact my credit score. I recently moved from the Philippines to the USA and I’ve learned that credit scores are really important here. Any insights would be greatly appreciated! Thank you!
I’m really sorry to hear about your Honda Civic being stolen. That’s such a stressful situation.
GAP insurance stands for Guaranteed Asset Protection insurance. It’s designed to cover the “gap” between what you owe on your car loan and the current market value of your vehicle if it’s stolen or totaled. Since you just bought the car and it was stolen, GAP insurance could help you pay off your loan if your insurance payout is less than what you owe.
As for your credit score, typically, if you have GAP insurance and your car is stolen, it shouldn’t directly affect your credit score. However, if you end up unable to pay off the remaining balance of your loan because of the theft (and if you don’t have GAP insurance), it could potentially impact your credit if you miss payments.
It’s a good idea to contact your auto insurance provider and your GAP insurance provider to discuss the next steps. They can walk you through the process of filing a claim and what you should expect moving forward.
Stay calm, and take it one step at a time. Good luck!