finance company is saying car was repo'd when it was really a total loss

[LdiJ]

Wrong. GAP insurance is NOT ALWAYS a condition of financing. ETA: What racer said!

Of course CAP insurance is not ALWAYS a condition of financing. However, when GAP insurance exists at all, it IS a condition of financing. In other words...the lender won't finance the car unless GAP insurance is purchased, for that particular borrower.

Racer is commenting on his own situations where he was never required to buy GAP insurance, therefore its not relevant to the discussion.

 

[Zigner]

Of course CAP insurance is not ALWAYS a condition of financing. However, when GAP insurance exists at all, it IS a condition of financing. In other words...the lender won't finance the car unless GAP insurance is purchased, for that particular borrower.

WRONG -

I just purchased a vehicle, brand new, and the GAP insurance was offered, not required.

 

[FlyingRon]

Of course CAP insurance is not ALWAYS a condition of financing. However, when GAP insurance exists at all, it IS a condition of financing. In other words...the lender won't finance the car unless GAP insurance is purchased, for that particular borrower.

You're not correct. I've seen lenders offer but not require GAP insurance and GAP insurance is also available independent of the financing through traditional insurance brokers either as a standalone policy or as part of your regular auto coverage.