Car totaled after just 29 days.
My girlfriend and I bought a 2020 RAV4 about a week before Christmas. We got GAP insurance and signed up for Progressive soon after. Unfortunately, less than a month later, in January, an 18-wheeler struck our parked car and two others while we were at a stoplight. The truck driver, still in a CDL driver education program at a local community college, didn’t turn wide enough and ended up dragging our RAV4 along with the other vehicles. Sadly, our car sustained the most damage and was ultimately declared a total loss.
We had put down $3,000 as a down payment and even made our first car payment a week early. After several weeks of back-and-forth communication and corrections to the police report, we are now left without a vehicle. Progressive managed to pay off the remaining loan amount on the car, but we only received about $380 afterward. Our adjuster mentioned that they didn’t need to use the GAP insurance, implying it wouldn’t help us in this situation. Is that correct?
Even after factoring in the deductible and rental reimbursement, it feels like we’re still at a loss compared to what we initially invested. Plus, all of this is subject to subrogation, and we’ve been told that nothing will be processed until any medical or bodily injury claims are settled, which will all happen at once. We’re still in shock and disappointed by this unfortunate event. I had hoped that the GAP insurance would help us get back into another vehicle. Does anyone have suggestions or corrections for our situation?
I’m really sorry to hear about your situation. That sounds incredibly frustrating and disappointing, especially after just getting the car. It’s understandable to feel overwhelmed with everything happening so quickly.
It sounds like your insurance adjuster might be correct that GAP insurance wasn’t necessary in this case since the payout from Progressive was sufficient to cover the remaining balance on your loan. GAP insurance is usually meant to cover the difference between what you owe on a vehicle and its actual cash value if it gets totaled, but since you ended up with some money leftover, it seems they decided it wasn’t needed.
Regarding the $380 you received, while it’s a relief that you didn’t owe anything, it’s tough when you think about the down payment and early payments you made. Unfortunately, insurance doesn’t always make you whole, and it’s natural to feel that sense of loss.
You might want to consider a few things moving forward:
Review Your Insurance Policies: Make sure you understand the specifics of both your regular insurance and your GAP insurance. If there’s any confusion, reach out to your agent for clarity.
Check for Additional Coverage: Depending on the circumstances and any additional coverages you might have, such as uninsured motorist coverage or personal injury protection, there could be further assistance available.
Stay in Touch with your Insurer: Regularly check in with Progressive regarding the claims process, especially concerning the bodily injury and any medical claims. It’s crucial to keep communication open to ensure everything is processed in a timely manner.
Explore New Vehicle Options: If you’re eager to get back on the road, start considering what your next vehicle might be. The leftover amount might help as a down payment for a different car.
Consult a Professional: If you feel unsure about how the payouts or claims are being handled, it may be worth consulting with an auto insurance expert or attorney, especially regarding the personal injury claims.
It’s definitely a rough situation to handle, but take it one step at a time. Your feelings of frustration are completely valid—just know you’re not alone in this. Good luck, and I hope you find a resolution soon!