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Michelle
Michelle, Paralegal
Category: Legal
Satisfied Customers: 4136
Experience:  31 years of experience in criminal, real estate, juvenile and family law
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How does GAP insurance work? After a car is total, who ...

Resolved Question:

How does GAP insurance work? After a car is totaled, who applies for the insurance payment?
Submitted: 9 years ago.
Category: Legal
Expert:  Michelle replied 9 years ago.

Dear Customer

Comprehensive and collision insurance on your policy only covers the "fair market value" of a vehicle. So, if a car is totalled, gap will cover the cost between what you owe on a vehicle and what your insurance agency will state it's worth or it's "FMV". As you probably are aware, a vehicle depreciates the minute it is driven off the lot.

Gap insurance on the vehicle that was totalled should kick in regardless of who is at fault. If you have more concerns about Gap or your insurance agency not helping you, you should contact the GA Insurance Commission - you can CLICK HERE for that contact information

Best of success to you,

Customer: replied 9 years ago.
Reply to Michelle's Post: Michelle, I got this info from the inernet. What I need to know is whose responibility it is to file for the GAP insurance once the car has been totaled--mine or the lien holder's?
Expert:  Michelle replied 9 years ago.

Dear Customer

I apologize for not fully understanding your question - It is your responsibility to have the GAP insurance on your vehicle and it is your responsibilty to contact your insurance agency.

 

 

Customer: replied 9 years ago.
Reply to Michelle's Post: I am sorry I am not being thorough. The insurance was purchase through the car dealership at the time I purchased the car, which means it was financed by the finance company. Since it has been more than 7 years since I purchased the vehicle, I don't recall ever receiving a policy. The problem I am having is after 2 years after the car was totaled I am being asked to pay the amount left on the car since it seems no one filed for the GAP insurance.
Expert:  Michelle replied 9 years ago.

Dear Customer

I see. You were never advised that you MAY purchase the GAP insurance IN ADDITION to the basic coverage - The dealership or your insurance agency could have advised you that you have that option. However, there are no laws mandating such. Most times, they will tell a customer, if for no other reason then to get the extra money that it costs for the GAP coverage.

Customer: replied 9 years ago.
Michelle, I did purchase the GAP ins.at the time of the car purchase. It was part of my car purchase contract. so I had GAP ins. when the car was totaled. At the time of the accident, the lienholder stated that I was through with them because I had GAP insurance, 2 years later they said I still owed. Since I never saw a policy I don't understand how they expected me to file and they said when they looked at the contract that I had GAP and I was through with them. I hope this is not too confusing.
Expert:  Michelle replied 9 years ago.

Dear Customer

Ok. I am trying to follow the scenario. Thanks for your patience with me in that regard. So, based on you having had the GAP and being told that the car was totalled but the GAP covered the loss (if I am correct) what is your question again?

Thanks ~ Michelle

Customer: replied 9 years ago.
Who should have filed the claim? Did the lienholder drop the ball or did I in some way?
Expert:  Michelle replied 9 years ago.

Dear Customer

The lienholder is never responsible for filing a claim. Was there something they said that made you believe they would file the claim for you? If you have documenation - notes or some sort and the fact they cleared you of the debt, then I suggest that you contact the INSURANCE COMMISSION as I posted originally. First of all, if you had the GAP insurance then regardless of who files the claim it should be paid. Now, if you thght the lender was filing and they thought you were filing - you still should be able to get the lien paid via your insurance and that is why I suggest contact the Insurance Commission to get help with have the insurance company pay the claim. However, you and the lender are going to have to work together on this - Talk with the Insurance Commission folks and explain that each of you thght the other was making the claim. The bottomline, that would hve been your responsibilty - but you may be able to salvage something with help from the Commission.

I do wish you the best of success in this matter,

 

IF my answer has been helpful, please ACCEPT - if you need further help, please let me know. Appropriate FEEDBACK is appreciated, as is a BONUS.

Thanks ~ Michelle

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