Question about Gap insurance?

Question

I had a 2004 Pacifica that I was paying about 500/mo on. I had never been late on a payment, nor had I ever missed a payment. The vehicle itself was only worth about 15k, but I owed 27k. I had a total loss housefire about 6 months ago in which the Pacifica was burnt as well. I did the necessary steps and my insurance company drafted a check to the bank on which my auto loan was on. However, I still had 12k remaining, in which my Gap was supposed to take care of. I once again sent the company all the information they required. It has been 6 months, and they still have not covered the remaining balance. I have had to make 5 additional car payments (always on time) just because the loan is still outstanding until Gap comes thru. Everytime I talk to someone on the phone (which is a low % of the time), they tell me that they are still processing and that it will be X amount of time until it is settled. They inform me that they are not responsible for any refund on the 2500 dollars

Answer 1

Call your state's insurance commissioner and report this and ask them how to get the insurance company to stop dragging their feet. Usually if the insurance commissioner gets involved, the company will get investigated.

Answer 2

First thing that comes to mind is that you speak with an attorney.   If you have the insurance, it should've kicked in already.   How about speaking with the dealership where you bought the car, perhaps they can explain the process to how to make sure the gap insurance kicks in.   They're the ones who usually sell you the GAP in the first place.

Sorry to hear about the loss you had..  I'm certain that insurance companies make it very difficult for you to get 100% covered, even if you've been paying for their service.

Ins. Cos. recently have been making life more difficult for people... almost insinuating that everything that happens is your fault somehow and if it doesn't exactly fit the rules of coverage...then you're not covered.   For ex:  Question # 15.  Was your Car In the Garage facing in or did you back into the garage?   The answer to that question will determine everything.

Good luck

Answer 3

contact your state insurance commission---they will take up your cause against the insurance company

Answer 4

I would talk to an attorney and review my Gap contract but they should pay entire amount

Answer 5

When you purchased the GAP insurance, it was for the difference between the residual value of the car and your outstanding balance.  The time it was reported as damaged in the fire is the date the GAP insurance has to cover minus the deductible.  You need to contact your state insurance regulator about your insurance company and file a complaint.  Your GAP insurance company needs to settle that in a timely manner, unless there is an investigation about the fire by your local authority.  If your home owner insurance policy stated that they will not cover vehicle inside the garage, you still can ask them what you can do.  They are very familiar with this type of issue.  I am assuming that your homeowner insurance company has already settle with the damage.

Good luck!