Nothing is worse than thinking you are covered, only to find out you aren’t.

Claims are usually denied for one simple reason: the driver didn’t buy the specific line item coverage they thought they had. Maybe they skipped “collision” to save money, or they didn’t add towing.

Know What You Are Buying

I cannot stress this enough: you have to understand what you are buying. I had a young client recently who was in an at-fault collision with her 2025 car. She totaled it. Fortunately, AllState paid out the value of the vehicle.

She had financed the car, and because she owed more than the car was worth, her Gap insurance kicked in to pay the bank the difference.

That is exactly how it should work. But here is where it got confusing for her. She bought a replacement car and paid cash for it, but she still wanted to buy Gap insurance. I had to tell her, “You don’t need it.”

Gap coverage pays the bank, not you. If you paid cash, there is no “gap” between the loan and the car value. She thought it was just extra money she would get in an accident.

Always talk to an agent to understand what your policy actually does before you need it.