what happens if i don't file a GAP insurance claim?

Question

on st patricks day, i totalled my car that was worth $9000, and i owed $11500 on it. i bought GAP insurance when i got the car. but about 3 weeks before my wreck, a guy backed a camper into the side of my car. long story short, his insurance company gave me a check for $2300 to get it fixed. i didnt care that it was dented so i blew the money on a weekend in orlando (and i dont regret it one bit either.) but after my car accident, my insurance company told me they knew i had that claim from the camper backing into me. she asked me if the check i got for it was less than $1200 and i said no. so she said they were gonna pay the value of the car MINUS $1200 and the GAP insurance will pay the rest of the car, but she said the GAP insurance will ALSO minus out the $1200. so, all in all, after my insurance and my gap insurance pay this car off for me, i will still owe $1200. i have no intention of paying off this $1200, simply because i just cant financially. my insurance has paid their part, but im in the middle of filing the GAP claim. and it sucks. OMG they want copies of the stupidist randomist crap. which i get it, they make u just through hoops so they can find a way to deny your claim. but, here is the thing...i already bought a new car. when i bought my new car, the salesman said there is no other car loan on my credit report. so, what i am wondering is, if i dont bother to file the gap insurance claim, and i walk around owing like 3500.00 for my totalled car (that i have no intention of paying, cuz screw them.), and that car is potentially not even on my credit report, whats the worst that can happen to me? what, i'll screw up my credit? its pretty gruesome already. i am in the middle of a divorce, selling a house and i have nowhere to live after it sells, my husband has custody of my daughter, and i think i might be losing my job. so, this GAP insurance/car payment thing can take a back burner right? if u were me, what would u do? would u just stop paying the totalled car, dont bother with the GAP and focus on other things?

Answer 1

ok even though you have a lien, on the 1st accident you were not at fault so they paid you for the amount of the damages. they dont care if you fix the car or as you did, take a nice trip to orlando; they pay what they owed you;



the only time when the other insurance company considers a lien is when the car is totaled and then the check goes to the lienholder.



now your own insurance is different; the lienholder is listed on your policy to protect them for any damages; so any payment will either have the lien and your name or your name and a body shop to verify that you cant cash it without fixing your car.



even though this may not be listed on your credit report now, most likely will show up in a few months. you better file for your gap since believe me creditors will hound you for that $3500;



another consideration; if you were to lose your job; a lot of employers run credit checks on prospective employees; my step son had a job offer that they took back after they ran his credit and found a a judgment on his credit report;

Answer 2

Gap Insurance Claim

Answer 3

What they told you was correct. If you claim on the gap policy, they will pay the balance owed, minus the $1,200. If you don't you will owe the full balance remaining after the insurance pays their part. Really the other insurance messed up in giving you the check in the first place, since there was a lien holder who was probably named as loss payee, it should have gone to them or to the body shop fixing your car. But that's neither here nor there at this point, it's history. So you got, and blew $2300 and now it will cost you perhaps $2400 if both insurance and the gap coverage take of $1200 each, you lost a total of $100 by doing so.



You may have no intention of paying them what is owed, but they will get their money one way or the other.

Answer 4

First of all, I hate to say this being in sales most of my life, there is no way I would consider listening to any salesperson. Just because he said it wasn't on your credit don't mean much. Car sales people are out to get a sale and that is it. I know gap will do whatever they need to do to keep from paying the claim. In fact, that is what they are doing to you now and hope you go for. There would be nothing more beneficial to the gap company than for you to just leave it alone. They may make you fax papers, send papers, sign papers and do even more paperwork, but, it will be well worth it. This is what they are hoping you do is just drop it. You shouldn't do this. You paid for gap and now you can use it and you should. I wouldn't give up. If you have this on your credit down the line, $1300 is a lot easier to settle with than $3500. I know you haven't done all the right things here, and you should start doing them correct from this point forward. File the forms you are required and try to close out the other car and get it paid off. Credit is the single most thing you need to keep good as you can, it is a number that always follows you and will cost you thousands more if you screw yours up.

Answer 5

Sorry, I have nothing insightful regarding this question

Answer 6

Well, it depends..