This was my first vehicle purchase and I'm not sure I understand how gap insurance works.
At time of loss I owed 12,352
My primary insurance determined the acv of my vehicle was 8,777 which was 1,713 less than average comps in my area in my market evaluation report.
Primary paid my finance company 8,855
Leaving a gap of 3,497
Gap deduced 1,713 from the 3,497 and paid the difference.
They tried to explain why they won't pay the 1,713 but they were not very clear in their explanation.
Can anyone offer me a better explanation of why they won't cover the full gap?
Help me understand my GAP claim
byu/Then_Apricot_7069 inInsurance
Posted by Then_Apricot_7069
2 Comments
You’d have to ask them to know for sure. What it sounds like is that they believe that your insurance carrier did not pay the full ACV number for your car. And your GAP carrier has provisions that say that they will not cover that amount, b/c they argue that your insurance carrier should have paid that $1713.
If this was your insurance carrier and they were off on the valuation by that much, did you look into invoking the appraisal clause on your policy to contest their payout? Or did you just assume it didn’t matter, b/c you assumed your GAP coverage would pick up the slack?
If the loss vehicle had a lower than average ACV as a result of high mileage, poor condition or prior claims with unrepaired damage typically GAP does not cover that.
Without seeing the GAP contract and the actual reason for the partial denial hard to confirm the exact issue.