So, your car is a total loss, but you had the foresight to buy GAP insurance. GAP insurance takes care of the disparity between what your car is worth and the balance of your loan or what you owe on your lease or finance agreement from your financing company. Sadly, you won’t see any of this money, because its purpose is to pay back your lienholder so you aren’t left holding the car loan bag and all the negative equity. It’ll go directly to the lender you chose for your vehicle.
You only need GAP insurance if you owe more than your vehicle is worth. Once your loan amount is less than your car’s value, GAP insurance is of no help anymore.