Hello All, I need some help and opinions from all of you. I had a total loss of my 04 Expy on 2/2005 in which my insurance paid all but 3,500 of the loan. I knew I had purchased GAP coverage when I financed the car, so I assumed that my lender B of A would contact them for the remainder of what Progressive did not pay. Forward to today and I just got a recent copy of my credit report and B of A charged off the remaining balance of the loan. I contacted B of A and they told me that I would have to contact the GAP insurance company and it is not their job too, which is news to me. I called the GAP company and after checking they told me that there was a 6 month Statute of Limitations on any claims and since I am out of that they will not pay. Is this correct? Can they do this? Any help would be great!!!

Thanks

 

Thats a tough one. I bet it does say in your small print of your GAP insurance that there is a 6 month statute of limitations. I have GAP insurance and now I can't wait to go home and read my policy.

 

i don't know the answer, but i scrapped the gap insurance through my lender and got it with my insurance company. saves a lot of hassle and fine print.

 

Never had dealt with a total loss before and didn't know the process for GAP insurance... I still think that B of A knew that I had it, because they required it in order for me to finance and I signed a form to them with the copy and sent it to them. They should have collected their money instead of charging it off on me......

 

I believe it is like any insurance you must notify them. It is your duty. As for the 6 month deal. I could believe that. B of A is really getting to be difficult to deal with. We banked with them for years. We just closed our accounts with them opted for a small credit union. You need to read the small print, or ask a lawyer. I can tell you that all these GAP & EXTENDED WARRANTY DEALS that these dealerships push are real money makers for them and many are not good for the buyer because of loop holes in what they have to cover and when. A mechanic I know was repairing a rear end on a truck that had an extended warranty after a week the mechanic was visited by the adjuster. After inspection the adjuster went back to his office and another week later called the shop to tell the mechanic that they wouldn't cover the repairs because the truck had oversized tires. The tires where installed by the dealer when it was bought. So the customer was out $2000. LOOPHOLES, LOOPHOLES.

 

I have my GAP insurance with my auto insurance agent. It's part of the insurance package.

 

Most statute of limitations are mandated by the state. You sould check your state's laws. You could contact the state insurance department. Delays in notification of the insurance company is normally only enforceable if it prevents the inurance company from properly investigating the claim.

 

i picked up gap through ford because allstate doesnt carry it, i will also read the VERY FINE PRINT

 

Gap is wise coverage to have. I dont understand what happened here though. Here is what should have happened
1. Wreck occurs, car totaled.
2. Insurance pays lien holder.
3. Lien holder calls you and says "You owe us the rest"
4. You pay or say "I have GAP insurance, call them"

It sounds like the Bank never told you to pay up since otherwise you presumably would have invoked the GAP coverage, or paid. It would seem unfair to ding your credit without so much as a letter requesting payment..I would raise a stink until they retract the bad credit info.