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Can someone explain GAP Insurance to me??


Balian

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So my bike gets stolen and finally after a lot of months of fighting the insurance company, I get a bill from Harley saying I still owe x amount of dollars because GAP Insurance didn't pay it all. Isn't the point of having GAP insurance to cover what your insurance company does?
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Wow. Salesguys need to learn what the hell they are selling. I was told by more than 2 people at the dealership that the GAP insurance would pay whatever the insurance didn't pay and leaving me with no payment if it was stolen, or destroyed.
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here got this from one of our manuals

 

Total Loss Coverage (TLC) is insurance protection that covers the

difference between the borrower’s insurance settlement for physical

damage and the net payoff of the automobile loan.

Without TLC (aka: GAP insurance), the borrower will be responsible for

paying the difference between the actual cash value (ACV), less the

physical damage deductible and the loan balance out of pocket. This

gap occurs most frequently within the first three years of the loan term.

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Gap covers up the the book value of the car. Example:

You buy a car for $25000

Over 4 years the value goes down to $10000

You still owe $15000

Gap will usually cover around $10000, insurance should pay the rest.

 

Hmm..gap didn't even come into my situation till after the insurance had paid.

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Yea, I can see them not paying the deductible from your insurance, but not anything more..

Is there any type of disclaimer in the paperwork? Since in most cases you have to pay more to have gap they should hold up their end of the deal.

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I am courious about how much money they are asking for? The only thing that I can think of in this situation is that maybe when the GAP company called the loan company to get the pay off amount after the insurance sent in there payment, more interest was added to the loan because of timing. Normally when you call in for a pay off amount, that amount is only good for 7 days, if they don't get there money, then they continue to add interest. In that case, you would have to pay that amount because you are the one responsible for the loan. It is the only thing that I can think of. Hope you can get this worked out.
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if you had any late payments, deferred payments, or if you did not make any payments on your loan after your bike was stolen and before the insurance paid, gap will not cover that. for example

 

bike is stolen may 1st. you dont pay may since you think insurance is paying. you dont pay june, and insurance pays in july...you have 2 payments that werent paid, plus late fees/interest

 

gap wont cover that.

 

i deal with this every day doing auto collections

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