Contact Us for a Free Consultation 918-747-5300

HWH Blog

GAP Insurance Denied?

Posted by David Humphreys | Mar 20, 2018 | 0 Comments

What you need to know and do if your GAP coverage claim is delayed or denied

If your GAP claim is denied, contact us for a Free Case Review.

When buying a new or used car or truck, so much information and so many choices are presented to you. First, you have to decide on the vehicle and all its many options, and then you have to decide how you are going to pay for it. By the time you get to the Finance and Insurance office, you may too worn down to truly understand what you are signing.

You may end up with “GAP” insurance, which is also called Guaranteed Asset Replacement, GAP coverage, GAP Addendum, and many other names. If you are involved in a serious vehicle crash, you need to dig out your car buying papers and see if you paid for it. GAP insurance has been said to cover “the amount on a loan that is the difference between the amount owed and the amount covered by another insurance policy.”

Avoiding the question (for now) of why a legitimate car dealer would be selling you a vehicle (after your down payment) costing so much more than you actually owe that there is a “GAP”, what should GAP insurance do if your car is totaled?  GAP should pay off your car loan and bridge the gap between what the auto insurer pays and what the lender is owed.

What happens when GAP insurance won't pay off the balance? GAP insurance providers vary. This coverage can be purchased from the dealer, or you may even to be able to purchase it from your auto insurance agent. In either case, when your car is a total loss, you must read your GAP contract, policy, or coverage sheet carefully. You must notify your GAP insurance company in writing of the loss. You would be wise to send your notice (and all follow up papers) by certified mail, return receipt requested. After placing the GAP insurance provider on notice of your claim, carefully read the policy and make sure you send in all required documents in the time provided by the policy. Place everything in writing.

What you should do if your GAP claim is denied is gather the policy information and the denial letter from the GAP carrier and contact Humphreys Wallace Humphreys for a Free Case Review.

About the Author

David Humphreys

David Humphreys has been practicing law since 1987. He was a member of the first class (1994) of the Gerry Spence Trial Lawyers College, Dubois, Wyoming. He was recognized in 2004 by the college, along with his partner, Luke Wallace, as the Warriors of the Year for the 18-state South Central regi...


There are no comments for this post. Be the first and Add your Comment below.

Leave a Comment