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What to Expect if Your Car Is a Total Loss

In the unfortunate event that your car is totaled or stolen, your insurance settlement is based on the car's current market value—not the outstanding balance of your loan. Depending on how much you still owe, the payout you receive might not cover your balance.

What to Do After an Auto Accident or Theft

  1. Step 1

    Contact Your Insurance Provider

    After you're in an accident or your car is stolen, contact your insurance company immediately to start the claims process. Make sure your insurance company has the correct lien holder so they can process your request quickly.

    • If your car is NOT declared a total loss, you'll work with your insurance provider to have your vehicle repaired.
    • If your car IS declared a total loss and you have Guaranteed Asset Protection (GAP), move on to Step 2.
    • If your car IS declared a total loss and you do not have GAP coverage, your insurance provider can help you determine the next steps.

  2. Step 2

    File a Guaranteed Asset Protection (GAP) Claim

    If your car has been declared a total loss and you have GAP coverage, you can submit a GAP claim.

    • If you have GAP with Navy Federal, you can initiate the claim by calling us at 1-866-258-7298, Monday through Friday, 8 am - 5:30 pm.
    • If you have total loss protection or debt protection with another company, call them immediately.

    Not sure if you signed up for GAP with us? You can check by signing in to online banking, selecting your auto loan account and viewing additional account information.

  3. Step 3

    Submit Documentation

    The following documentation is required to submit a Navy Federal Credit Union GAP claim. Processing time is usually within 3-5 days of receiving all information.

    • Insurance settlement breakdown letter, which should indicate any taxes, fees and deductibles applied
    • Any information regarding the cancellation of optional insurance, extended warranties and/or service contracts
    • Insurance settlement check posted to the loan account

    You can upload the required documents online or by signing in to online banking or through our mobile app. You may also bring your documents to a branch.

Further Assistance

Need a rental car?

Members can save with a special discount from Enterprise Rent-A-Car.

Get Started with Enterprise-Rent-A-Car

Interested in buying a car?

Shop online, compare top brands and see what others paid for the car you want. You can get upfront price offers and special incentives on select vehicles. 

Get Started with TrueCar

Protect Yourself From Future Accidents

Guaranteed Asset Protection (GAP)Footnote 1 could help cover the costs that standard car insurance can't.

Learn more about GAP with Navy Federal

Frequently Asked Questions

A vehicle could be considered a total loss, or totaled, if any of the following apply:

  • The vehicle cannot be safely repaired
  • Repairs would cost more than the vehicle's estimated value
  • The damage meets your state's total loss guidelines
  • Ultimately, your insurance company will determine whether your vehicle is considered a total loss. 

Yes, and this process can take some time. Please continue to make regular payments on your loan until you receive a letter from us stating the balance of the loan has been paid off. However, there are a few other options for repayment, such as incorporating your old loan into a new car loan or transferring the balance to a personal loan. Call us at 1-888-842-6328.

You're still responsible for paying off any remaining balance on your auto loan. There are several ways you could arrange to pay it off.

If you have a remaining balance on your loan and you have GAP, we'll call you within 3 to 5 business days. If you need information faster, please call 1-866-258-7298, option 2.

If you have a remaining balance after all insurance and GAP claims have been paid, here are the three most common ways to handle a total loss with a remaining balance:

  • Keep the loan as is and continue to make payments until the loan is paid off.
  • Refinance the loan into a personal expense loan (new rates apply).
  • Combine the remaining balance with a new auto loan (please call to discuss).
  • If you'd like to speak with us about the loan options above, please call us at  1-888-842-6328, 24/7. 

We understand auto accidents can cause financial distress. If you're experiencing a financial hardship, we may be able to help you get back on track. For assistance, go to our Personal Finance Counseling page and fill out a Personal Finance Application. After submitting an application, one of our financial counselors will contact you by phone within 3 business days. 

You're still responsible for paying off any remaining balance on your auto loan. There are several ways you could arrange to pay it off.

Here are the three most common ways to handle a total loss with a remaining balance:

  • Keep the loan as is and continue to make payments until the loan is paid off.
  • Refinance the loan into a personal expense loan (new rates apply).
  •  Combine the remaining balance with a new auto loan (please call to discuss).

If you'd like to speak with us about the loan options above, please call us at  1-888-842-6328, 24/7. 

We understand auto accidents can cause financial distress. If you're experiencing a financial hardship, we may be able to help you get back on track. For assistance, go to our Personal Finance Counseling page and fill out a Personal Finance Application. After submitting an application, one of our financial counselors will contact you by phone within 3 business days. 

 

Disclosures

1

Your purchase of Guaranteed Asset Protection (GAP) is optional. Whether or not you purchase GAP will not affect your application for credit or the terms of any existing credit agreement you have with Navy Federal. You may choose to pay the fee in a single lump sum or you may finance it into your loan, which would increase the cost (NOTE: California Active Duty and Active Reserve Duty servicemembers cannot finance the fee). If you cancel your optional GAP coverage within 60 days of enrollment, you will receive a full refund of any fees. Additional information will be provided to you, which will include a copy of the GAP Agreement and Disclosure (NFCU23A) containing the terms of the plan. There are eligibility requirements, conditions, and exclusions that could prevent you from receiving benefits under the plan. You should carefully review the additional information for a full explanation of terms.

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