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 Posted: Thu Dec 04, 2008 7:25 pm Post subject: Gap coverage |
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| I had gap coverage on my vehicle. The car was stolen and it did still did not cover the Gap? Am I being scammed? |
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shantehayes
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| Posted: Thu Dec 04, 2008 8:53 pm Post subject: |
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Well it depends. My Gap protection was provided by the company that financed my car, not my insurance company, or an outside source. If you had auto insurance and they didn't pay it all off, then Gap is supposed to finish it off for you. That's it's only purpose. To fill in the gap...completely.
But then again...I've seen it where some people didn't get to use their Gap at all because their notes weren't up to date. Think about it, if the finance company was the one handling your Gap insurance and you weren't UTD, why would they pay for the Gap???
Just a thought... |
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RaeVirtue
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| Posted: Fri Dec 05, 2008 1:36 am Post subject: |
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| Quote: | Eric
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Posted: 04 Dec 2008 22:00 Post subject:
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It really depends on your gap coverage. Some companies only cover a percentage of the total ammount. I know our Comapny, American Family Insurance, Gap coverage would covere the whole car if something like that were to happen. |
(moved this from another identical thread this thread was posted three times)
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Lori
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| Posted: Fri Dec 05, 2008 1:43 am Post subject: |
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| Quote: | | To fill in the gap...completely. |
Not completely Rae, in most cases, you will still owe your deductible, and it also will depend on (in some gap contracts) if there was a prior damage deduction from the value, if there was another loan rolled in or piggy backed onto this one...there are many exclusions that apply. | Quote: | | I had gap coverage on my vehicle. The car was stolen and it did still did not cover the Gap? Am I being scammed? |
Well I doubt you were scammed, what did the letter of denial say the reason for the denial was? Had to give you a reason...did your car carrier pay their part?
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Lori
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| Posted: Fri Dec 05, 2008 5:12 am Post subject: insurance |
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Ok......alittle 'under-educated' with this 'gap' thing. What is Gap Coverage? Hey, LORI.......can ya tell me something ( I'm just assunming YOU would know this answer..). Why has my name been on the Leader Board several times? Am I 'special'?!  |
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sdchargersfan
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| Posted: Fri Dec 05, 2008 9:59 am Post subject: |
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Yes, SD you are very special, but in addition to that you apparently have had the top three number of posts since the month has began..
GAP ins is a policy you can buy (or may be required to buy) that pays the 'gap' between the vehicles value and what you owe your leinholder..in the event of a total loss
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Lori
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| Posted: Fri Dec 05, 2008 11:35 am Post subject: |
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Hey OP, how much do you still owe to the financier? What's the reason for the gap insurance provider not to cover the difference between the insurance settlement and the loan?
Lori, we yet don't know whether the OP was in a single car accident or in a multi-car accident where the other driver is responsible for causing the damages to him. If it's a third party claim I guess he isn't required to pay the deductibles. Please, correct me if I've got anything wrong.
However, the other reasons mentioned by Lori may still hold good for the gap insurance falling short of the outstanding loan amount. |
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jeorge
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| Posted: Fri Dec 05, 2008 12:21 pm Post subject: |
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| Quote: | | Lori, we yet don't know whether the OP was in a single car accident or in a multi-car accident where the other driver is responsible for causing the damages to him. If it's a third party claim I guess he isn't required to pay the deductibles. Please, correct me if I've got anything wrong. |
yeah, jeorge, ya' kinda have it all wrong here, the OP said his car was stolen | Quote: | | The car was stolen |
so had to be a comp claim and his company that paid the claim...some gap policys cover the deductible, most don't..
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"Never, never be afraid to do what's right, especially if the well being of a person or animal is at stake. Society's punishments are small compared to the wounds we inflict on our soul when we look the other way." Martin Luther King Jr. |
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Lori
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| Posted: Fri Dec 05, 2008 12:21 pm Post subject: insurance |
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OIC!! Gee.......I feel special, LORI..thanks.  You mean the 'gap' is the difference between the two ( value and what you owe the leinholder)? |
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sdchargersfan
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| Posted: Fri Dec 05, 2008 1:31 pm Post subject: |
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yep
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Lori
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| Posted: Fri Dec 05, 2008 5:29 pm Post subject: |
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Don't find out about GAP insurance the hard way. My friend never inquired about it when she purchased a enw vehicle. She didn't have the vehicle for too long of a period before sliding on bad roads and totally her SUV. She had ot suffer a loss on that one.
GAP insurance...it is necessary for the first few years of a new car or how exactly does this work? |
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fireyone
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| Posted: Sat Dec 06, 2008 1:54 am Post subject: |
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GAP as far as I know stays in affect until you (the policy holder) cancels it...on the other side of the coin I have seen some people that had GAP (paying the premium of course) when they didn't need it...(ie...vehicle ACV=10k, pay off =8K GAP in this instance is nothing but a waste of money.
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"Never, never be afraid to do what's right, especially if the well being of a person or animal is at stake. Society's punishments are small compared to the wounds we inflict on our soul when we look the other way." Martin Luther King Jr. |
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Lori
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| Posted: Sat Dec 06, 2008 2:37 pm Post subject: insurance |
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| LORI.........you made that explanantion ( about 'GAP'..) pretty clear. At least that's ONE thing I can understand about insurance..LOL |
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sdchargersfan
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| Posted: Mon Dec 08, 2008 8:53 am Post subject: |
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| Quote: | | it is necessary for the first few years of a new car or how exactly does this work? |
Firey, you definitely need gap insurance on a new vehicle, especially on one with the lien on it. Even for used cars, the dealer may require you to purchase gap insurance in order to ensure that he'll not be at loss if the car totals in an accident.
However, as lori has said many people actually pay unnecessarily on the gap coverage even when they don't need it. That is mainly because we often don't review our insurance needs. You may not need to maintain the gap coverage on the vehicle
*If you have repaid a considerable part of the loan
*If your car is sufficiently old to reduce its actual cash value
*If you don't owe on the vehicle more than what its worth
Hope this helps. |
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JeremyHolter
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