Question

Do I still have to make payments on a totaled car with gap insurance?

If you have active gap insurance, then it is not required for you to make the payments.

In cases without gap insurance, if your car is totaled and you have a remaining loan balance, you have to pay it out of your pocket. With gap insurance in place, you are paid the difference between the actual cash value and the remaining balance of the loan.  

For instance, if your car is valued at $19,000, but you still owe $22,000 on your loan, your insurance pays the car’s value minus your deductible if the car is totaled. With a $1,000 deductible, the insurer will pay $18,000, leaving $4,000 on your loan. GAP insurance covers the remaining $4,000, paying off the loan completely. 

In other words, if the actual cash value is less than what you owe on the loan, then the gap coverage will cover the difference, but if there is a missed payment, penalties, or insurance deductible, the gap coverage won’t pay for it.