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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Consumer Protection Law
Satisfied Customers: 18831
Experience:  B.A.; M.B.A.; J.D.
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We were charged for gap insurance at the rate of $800 a

Customer Question

We were charged for gap insurance at the rate of $800 a year.
JA: What state are you in? It matters because laws vary by location.
Customer: California. When we went to insure our car our AAA agent told us that he only charges $30. a year for gap insurance. How can I go with his service and change my contract on this new car? I feel very cheated.
JA: Has anything been filed or reported?
Customer: That is what I am trying to find out. the finance gal is not in yet this am
JA: Anything else you want the lawyer to know before I connect you?
Customer: this is the issue at present
Submitted: 10 days ago.
Category: Consumer Protection Law
Expert:  Phillips Esq. replied 8 days ago.

Hello: This isCustomer Welcome to JustAnswer! I am reviewing your post, and I will post my response very shortly. Thank you for your patience.

Expert:  Phillips Esq. replied 8 days ago.

I am so sorry to read that you have been cheated.

Kindly note that I just came across your post. I do not have control over the question list. I am just a site user just like you. Nonetheless, I apologize for the delay in response to your post.

Expert:  Phillips Esq. replied 8 days ago.

The AAA agent should provide you the proper forms to change the insurance and get out from the current insurance.

Best wishes,

Customer: replied 8 days ago.
Well it is not that simple. Of course I told the finance person that I did not appreciate the $895. (amended) per year charge for
six years which the loan happens to be. It raises the amount of the price of the car from $17,937. to $25.303. by the end of the loan. The reason I know she cheated us is that she told us she has had AAA for her car for years. So she knew that their
gap insurance is only $40. a year. She hadn't the decency to tell us about it for our deal though. I did tell her I am changing
our insurance to AAA and she said that once we get the policy number on the gap ins. that she ordered she will get it to me.
She also said she is taking the first $895. out of the $1000. down payment we gave for the car. Maybe that's how she gets her commission, I don't know. It still remains that she won't change the monthly payment but is leaving it as is. We originally
had told them that we did not want our payment to go over $300. When the this finance officer sold us this gap insurance
she made it sound essential that we have it and kept shoving a Lucite picture of all of the electronic components in these new
cars that can go awry. We really didn't know we could refuse or shop elsewhere for this insurance. We thought we had to have it before we drove the car off of the lot that day. Is there anything I can do to change this contract. Perhaps I could apply this extra cost to an extended warranty. We are only being given 3 years warranty. The percentage rate is %2.99 which
seems good. Tell me what to think about this? I have a call out to the dealership owner because I received a letter from him today with his contact number. Can I tell him I have an ID # with You if I need to?
Please get back to me. Thanks. Kendra
Expert:  Phillips Esq. replied 8 days ago.

Hello Kendra: You need to go straight to the sales manager with your concerns. The person that sold you the gap insurance most likely works on commission. The more gap insurance she sells at the outrageous price the more she gets paid. What she did is a sure way to lose returning clients. You need to make it to the sales manager that you have found far cheaper insurance and you need to amend the contract to remove the dealer's gap insurance.

Best wishes,