Car totaled after just 29 days.
My girlfriend and I bought a 2020 RAV4 about a week before Christmas. We also purchased GAP insurance and signed up for Progressive insurance shortly after. Unfortunately, less than a month later in January, while waiting at a stoplight, my girlfriend and two other drivers were struck by an 18-wheeler. The driver was in a commercial driver’s ed program at a local community college and didn’t maneuver wide enough, resulting in the 18-wheeler dragging our RAV4 and the two other cars. Sadly, our vehicle sustained the most damage and was ultimately declared a total loss.
We made a $3,000 down payment on the RAV4 and paid our first car note about a week early. After several weeks of back-and-forth communication and correcting the police report, we’re now left without a car. While Progressive covered the payoff amount for the car, we only received about $380 afterward. Our adjuster mentioned that GAP insurance wouldn’t be necessary and wouldn’t provide any benefits in this situation. Is that accurate?
Even after we account for the deductible and rental reimbursements, we’re still falling short compared to our initial investment. Plus, all of that has to go into subjugation. The adjuster also stated that everything wouldn’t be processed until the medical and bodily injury claims are resolved, and they’d handle it all at once.
We’re honestly still in shock and disappointed because it feels like we got dealt a bad hand through no fault of our own. I really thought the GAP insurance would help us get back on our feet. Any advice or insights would be greatly appreciated!
I’m really sorry to hear about your situation; it sounds incredibly frustrating and disappointing. It’s good that you had GAP insurance, as it generally helps cover the difference between what you owe on the car and what it’s worth if it’s totaled. If Progressive paid off your loan and you received a little extra, it sounds like they deemed your policy didn’t require GAP coverage in this instance.
However, it’s essential to review the terms of your GAP insurance policy to see what it covers. Usually, GAP insurance kicks in if there’s a shortfall between the payout from your primary insurance (like Progressive) and your remaining loan balance. If Progressive covered your remaining loan balance and still provided you with some cash, it might be true that GAP wasn’t used.
As for your frustration about the temporary lack of a vehicle and the upcoming medical claims, it could take some time to resolve the entire process. Keeping in close contact with your adjuster and asking for regular updates can be helpful. If you feel unsure about the adjuster’s assessment or need clarification on your coverage, don’t hesitate to reach out to GAP insurance directly for an explanation.
In addition, you might want to consider speaking with a lawyer or an insurance specialist if things don’t seem to be moving forward as you hoped. They can help ensure you fully understand your rights and options moving forward. It’s understandable to feel overwhelmed, so take it one step at a time, and make sure to advocate for yourself and your girlfriend throughout this process.