Gap On A Totaled Vehicle Isn't Paying Off The Full Loan Amount.

Good Morning,

My wife and I purchased GAP through the bank on a loan for a vehicle. Vehicle was totaled. Insurance took almost a month and undervalued the vehicle, but finally paid the bank. According to the GAP agreement we signed, they're allowed to deduct our deductible from the loan payoff, ours was $100. However they also added in prior damages (some of which were on the vehicle when we purchased it), plus vehicle condition adjustment. Neither of which are shown in the gap agreement, leaving us with over $1000 to pay off the loan. Are they entitled to make these adjustments?