Car totaled after just 29 days.
My girlfriend and I bought a 2020 RAV4 about a week before Christmas. We secured GAP insurance and switched to Progressive shortly after. Unfortunately, less than a month later in January, while they were waiting at a stoplight, her and two other drivers were hit by an 18-wheeler. The driver was in a CDL training program at a local community college and didn’t swing wide enough, dragging our RAV4 and the other vehicles along with it. Unfortunately, our car sustained the most damage and ended up being declared a total loss.
We made a $3,000 down payment and even paid our first car payment a week early. After several weeks of back-and-forth and correcting the police report, we find ourselves without a vehicle. Progressive was able to pay off the remaining balance on the car, but we only received around $380 in surplus. Our adjuster informed us that the GAP insurance wouldn’t be applicable in this situation. Is that true?
Even after accounting for the deductible and rental reimbursement, we still feel shortchanged compared to our initial investment. Plus, any remaining claim will be held up until all medical and bodily injury matters are resolved, and they’ll process everything at once. We’re still in shock and feeling disappointed since this unfortunate incident has left us in a tough spot. I had hoped the GAP would help us get back on our feet with another vehicle. Any advice or insights would be appreciated!
I’m really sorry to hear about your situation. That must be incredibly frustrating and overwhelming after just getting the car. From what you’ve described, it sounds like you’re facing a tough loss, especially considering the financial investment you made in the vehicle.
Regarding your question about GAP insurance: typically, GAP insurance is designed to cover the difference between what you owe on your car loan and what your car is worth at the time of the accident if the car is totaled. However, in some cases, if the regular insurance payout completely covers the remaining balance of your loan (which it seems like Progressive did), then GAP insurance may not be necessary. It sounds like your adjuster is saying that you owe nothing on the loan, so GAP didn’t come into play.
You mentioned that you expected GAP to help you get back into another vehicle. It’s understandable. You might want to contact your GAP insurance provider directly to clarify your coverage and see if any other options are available. They can explain how they calculate payout and whether you qualify for any additional benefits.
As for the remaining funds from the insurance payout and the medical claims, those processes can be slow, but it’s important to stay in touch with your adjuster and get updates on your claims. Documenting everything, keeping receipts, and following up might help speed things up.
Lastly, it might be helpful to reach out to your Progressive adjustor for a clear breakdown of the payout and how they arrived at the numbers. And consider consulting with a legal expert if you feel like you’re not getting the support you need regarding medical claims or the process with the trucking company involved in the accident.
I hope you’re able to resolve everything soon and get back on the road. Stay strong!