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What to Do if Your Claim for GAP Insurance Coverage is Denied in Oklahoma

David Humphreys Dec. 27, 2023

Welcome to our guide on GAP coverage in Oklahoma! In this blog post, we will explore the definition of GAP coverage, how to make a claim on your coverage and what to do if your claim is denied. Whether you're a driver in Oklahoma or anywhere else, understanding how to make a claim on your GAP coverage and what to do when your claim is denied is crucial to getting the benefits you purchased. So let's dive in!

What is GAP Insurance?

In Oklahoma, GAP Insurance coverage refers to a type of insurance that helps bridge the gap between the actual cash value of a vehicle and the amount owed on a car loan or lease in the event your vehicle is declared a total loss. It is designed to protect vehicle owners from the financial loss that can occur when the amount received from the insurance company for a totaled or stolen vehicle is less than the outstanding balance on the loan or lease.

Here's how Gap Insurance coverage works in Oklahoma:

1. Actual Cash Value (ACV): When a vehicle is declared a total loss, the insurance company typically pays the actual cash value of the vehicle at the time of the loss. The ACV is determined by considering factors such as the vehicle's age, condition, mileage, and market value.

2. Outstanding Loan or Lease Balance: The outstanding loan or lease balance is the amount still owed on the vehicle at the time of the total loss. This includes any remaining principal balance, interest, and fees.

3. Gap Coverage: Gap Insurance coverage helps cover the difference, or gap, between the ACV and the outstanding loan or lease balance. If the ACV is less than the amount owed, Gap Insurance can help pay off the remaining balance, ensuring that you are not left with a financial burden.

Our firm is not making any recommendations to purchase GAP Insurance, instead we are here to help you understand what you bought and how to use if your vehicle is declared a total loss.

How to make a proper claim for GAP Insurance

To make a proper Gap Insurance claim in Oklahoma, follow these basic steps:

1. Review your Gap policy: Carefully read your Gap Insurance policy to understand the terms, conditions, and requirements for making a claim. Take note of any specific documentation or deadlines mentioned in the policy. Notice that many Gap Insurance policies include a very short window of time for you to make a claim following a total loss, sometimes 90 days. If you fail to make a proper claim with the required documentation, know that the Gap company will look to deny your claim as untimely.

2. Notify your primary auto insurance company: In the event of a total loss or theft of your vehicle, first, contact your primary auto insurance company to initiate a claim. Provide them with all the necessary details and documentation related to the incident. If you have a car wreck attorney, get their advice first.

3. Obtain a settlement offer: Once your primary auto insurance company has evaluated the claim, they will provide you with a settlement offer based on the actual cash value (ACV) of the vehicle. This is the amount they are willing to pay for the loss.

4. Gather required documentation: To make a Gap Insurance claim, you will typically need to provide certain documents, which may include:

- Copy of your vehicle's title or registration

- Copy of your primary auto insurance settlement offer

- Proof of the outstanding loan or lease balance from your lender

- Any other documentation required by your Gap Insurance provider

Your Gap insurance policy should tell you exactly what proof documents you must provide to make a claim. Read it carefully.

5. Write, fax or email your Gap Insurance provider: Make contact with your Gap Insurance provider IN WRITING to inform them of the total loss or theft of your vehicle and initiate the Gap Insurance claim. You must keep good written documentation of each step in the process.

6. Submit the claim documentation: Prepare and submit all the required claim documentation to your Gap Insurance provider as per their instructions. Ensure that you include all the necessary paperwork and provide accurate information to expedite the claim process.

7. Follow up on the claim: Stay in touch with your Gap Insurance provider by email or document your contacts by email, fax or certified mail to check the status of your claim. They may require additional information or documentation, so be prepared to provide any requested updates promptly. Keep notes of each time you follow up on your claim. Make note of who you speak with, the date of the communication and the substance of the communication.

8. Once your Gap Insurance provider has reviewed your claim and the necessary documentation, they will determine the amount they will pay to bridge the gap between the ACV and the outstanding loan or lease balance. If approved, they will issue the payment directly to the loan or lease company.

Remember, it is essential to carefully review your policy and follow the instructions provided by your Gap Insurance provider. If you have any questions or need assistance, document these steps in writing.

Dealing with a Denied GAP Insurance Claim

If your Gap Insurance claim is denied in Oklahoma, there are several steps you can take to address the situation:

1. Review the denial letter: Carefully read the denial letter or communication from your Gap Insurance provider. It should explain the reason for the denial. Understanding the specific grounds for denial will help you assess your options and determine the next steps.

2. Contact your Gap Insurance provider: Reach out to your Gap Insurance provider for clarification on the denial and ask for a detailed explanation of the reasons behind the decision. This will help you understand if there was any misunderstanding or if there is additional information you can provide to support your claim.

3. Seek legal advice: Once the Gap coverage provider documents its position (or ignores your documented written efforts) you should contact Humphreys Wallace Humphreys. We can help you understand if you have a case that we can recover the full losses you suffered, and not just the loss of coverage, but the hassle, stress ,and damage to your financial life and emotional well-being. In properly documented cases where there is a showing of fraud, bad faith or malice, punitive damages may be available to punish the wrongdoer to hold them accountable and to stop this from happening to others.

Remember to keep detailed records of all communications, including emails, letters, and phone calls, related to your claim denial. These records are necessary to preserve the truth of what happened to you.

In conclusion, follow these steps and be respectful throughout the entire claim process and hopefully the provider will do the right thing. If they don’t please call us.