by Jodi » Tue Jan 06, 2009 10:03 pm
I had a car loan and delayed 3 payments over the loan due to job downsizing and not having the fiances to make those payments. I also had GAP insurance. My vehicle was totalled on 11/18/08. My car loan people are telling me that I am still responsible for those 3 delayed payments because GAP insurance doesn't cover them. I was under the assumption that GAP insurance was GAP insurance and no matter what they would pay the difference off. Please help
Posted: Mon Feb 23, 2009 04:48 am Post Subject: strange gap story
I had a car totaled Nov 20. First, our accident report wasn't available for over 2 weeks. The insurance was ready to settle on Dec 24, we drove to the home office, signed the paperwork and a check was sent to Citi auto. The check wasn't posted until Jan 9, nearly 2 weeks later. Citi had advised us "not to worry" about payments, the gap ins would take care of it; yes this it is documented in their system and despite this, we received calls from Citi auto until I told them this was dragging on to long, they needed to do something. Now, it is late Feb and gap insurance hasn't paid. We've sent 1) declarations statement and resent; 2) copy of check state farm sent. there was a clause in the gap ins that they had a time limit to settle (60 days) and it appears that they are dragging their feet and I would not be surprised to hear them say the time limit is up and they don't have to pay. Are delay tactics common with gap policies? Can they get out of paying by doing this?
Posted: Tue Feb 24, 2009 07:15 am Post Subject:
How long it has been since you have turned the claim to the GAP insurer? IMO the insurer can't avoid paying a claim if its justified. They need to state a proper reason for denying it. I hope you have supplied them the necessary documents for processing the claim. The gap coverage wouldn't be paid till you settle the original claim.
Since the check of the gap won't come to you, ask the lender to pursue the claim further. Its not easy to avoid paying a claim .
However, just hang tight the experts are on their way.
Posted: Wed Feb 25, 2009 06:21 pm Post Subject:
I would call my insurance company and ask them how the process works. Is it 60 days from the time of the accident or 60 days from the time the first settlement was made. This would cause a huge difference, be it with a coverage like gap insurance state farm . Do you have an agent you could call and ask? Usually when I have questions this is the first person I call or visit. They can usually explain it best since they are familiar with your policy.
Posted: Sat Feb 28, 2009 04:48 am Post Subject:
The gap would not pay until the claim is settled because they would not know how much to pay until it was all finalized.
Posted: Sat Feb 28, 2009 03:40 pm Post Subject:
That makes alot of sense. Is there a time frame after the first insurance pays that GAP would kick in?
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