You have just found out how insurance companies make their money. Find any excuse to deny payment for legitimate claims.
I don’t see how an extended warranty has any effect on your GAP insurance coverage or premiums. They are effectively saying that if you hadn’t purchased the extended warranty, their GAP insurance would not pay at all. The GAP insurance company is saying that THEY should have received the $1800, not you. That’s a bunch of Pelosi.
What the company is saying is that if you didn’t buy the extended warranty, your GAP coverage would have been $1800 less. However, I disagree with that. Your PREMIUMS would have bee a few dollars less. But what the company is doing is making you pay for coverage that they should be covering. They should only withhold the difference in the premiums for the remaining time on the loan.
I don’t know if you can take the GAP insurance representative to small claims for the $1800. I would check into that. Make them PROVE that they are right. References :
July 28th, 2010 | 2:41 pm
mbrcatz:
Gap doesn’t cover a whole bunch of things – including extended warranty or missed payments or late fees, etc. You can’t stop making your car payments, just because it was totalled.
This is very typcial of GAP coverage. It’s also very typical for third party gap policies to wait 4 – 6 months to pay out, after your car is totalled.
The way to avoid this, is by buying your gap coverage ON your auto policy – most (but not all) insurance companies will offer this coverage. References :
July 28th, 2010 | 2:48 pm
Margarita D:
If you had not had GAP insurance and had not cancelled the extended warranty prior to the accident, you would have been able to cancel the warranty now and use that money to reduce the total you owe. By the same token if you had not cancelled it the GAP carrier would have had it cancelled so that the amount owed would be reduced. Or another way to look at this is that the GAP insurance is meant to assist you in covering the possibility of your being upside down in terms of financing of the "vehicle" not all the extras you decided to buy.
Sorry but the GAP insurer is correct and you need to pay the money. They are not tricking you or trying to avoid paying the claim–read the GAP insurance policy for additional information. You did have the advantage of using the vehicle payment free for 6 months now its time to pay the piper. References : Certified Insurance Counselor, Licensed Insurance Agent & Broker for over 29 years.
You have just found out how insurance companies make their money. Find any excuse to deny payment for legitimate claims.
I don’t see how an extended warranty has any effect on your GAP insurance coverage or premiums. They are effectively saying that if you hadn’t purchased the extended warranty, their GAP insurance would not pay at all. The GAP insurance company is saying that THEY should have received the $1800, not you. That’s a bunch of Pelosi.
What the company is saying is that if you didn’t buy the extended warranty, your GAP coverage would have been $1800 less. However, I disagree with that. Your PREMIUMS would have bee a few dollars less. But what the company is doing is making you pay for coverage that they should be covering. They should only withhold the difference in the premiums for the remaining time on the loan.
I don’t know if you can take the GAP insurance representative to small claims for the $1800. I would check into that. Make them PROVE that they are right.
References :
Gap doesn’t cover a whole bunch of things – including extended warranty or missed payments or late fees, etc. You can’t stop making your car payments, just because it was totalled.
This is very typcial of GAP coverage. It’s also very typical for third party gap policies to wait 4 – 6 months to pay out, after your car is totalled.
The way to avoid this, is by buying your gap coverage ON your auto policy – most (but not all) insurance companies will offer this coverage.
References :
If you had not had GAP insurance and had not cancelled the extended warranty prior to the accident, you would have been able to cancel the warranty now and use that money to reduce the total you owe. By the same token if you had not cancelled it the GAP carrier would have had it cancelled so that the amount owed would be reduced. Or another way to look at this is that the GAP insurance is meant to assist you in covering the possibility of your being upside down in terms of financing of the "vehicle" not all the extras you decided to buy.
Sorry but the GAP insurer is correct and you need to pay the money. They are not tricking you or trying to avoid paying the claim–read the GAP insurance policy for additional information. You did have the advantage of using the vehicle payment free for 6 months now its time to pay the piper.
References :
Certified Insurance Counselor, Licensed Insurance Agent & Broker for over 29 years.