How do I get my GAP insurance to honor their services?

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How do I get my GAP insurance to honor their services?

I totaled my vehicle last October and sent in paperwork to GAP in November. At the beginning of February I got a notice stating that they still needed a few documents and it was my final notice. It was the only notice I received from them even though they claim to have sent 2 others. I called them and asked which documents they needed the day I got the letter. The financial company was supposed to have sent them those documents so I then contacted them Ally. Ally said they faxed them over. I didn’t hear anything for a long time, got a statement in the mail from Ally saying I still owed money on the vehicle. So I called them in June when I got the statement, they said they never received a paper from my insurance company. I called my insurance company, and the agent said he has never had to send in a paper like that but made one up for them. Ally then sent a copy of the title a month later in July. My GAP insurance stated that everything was due January 14th and that they could not honor my gap insurance because everything wasn’t turned in to them within 90 days from when the settlement check was written. I feel that I did my part by sending in my paperwork and now they keep bouncing me back and forth. Gap says it is my problem for not communicating to Ally.

Ally says they tried calling GAP multiple times and never got through. I still owe $4,200 on that vehicle and now have a new one. I can’t afford an extra payment and shouldn’t have to since I was responsible and got GAP insurance in the first place. I am at a complete loss on what to do.

Asked on December 6, 2017 under Insurance Law, Colorado

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

An insurance policy, including GAP insurance, is a contract: both parties are bound by what it says and must fulfill whatever obligations the policy/contract puts on them--and conversely, do not have to do *anything* not in the agreement in order to get the benefits (e.g. the payment).
Review the policy: what does it say *you* have to do in order to have a claim paid? If you did everything you were supposed to, within the time frame indicated in the policy, then you complied with your obligations--and they would have to comply with their obligations in turn. If they did not, you could sue them (the insurer) for "breach of contract," to force them to honor their obligations and pay you what they owe you.


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