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 the next day. Unfortunately, less than a month later in January, while parked at a stoplight, the two of us were involved in a collision with an 18-wheeler. The driver was a student in a CDL program at a local community college and misjudged the swing, dragging our RAV4 along with two other vehicles. Sadly, our car sustained the most damage and was ultimately declared a total loss.
We put down $3,000 as a down payment and even made our first car payment a week early. After weeks of back and forth—dealing with police report corrections and more—we find ourselves without a car. Progressive paid enough to cover the remaining balance on our car loan, leaving us with about $380. However, our adjuster mentioned that GAP insurance wouldn’t apply or wouldn’t help us. Is that true?
Even after we receive the deductible reimbursement and rental coverage, it still feels like we’re falling short compared to what we’ve invested. We have to wait for all of that to go into subrogation and process until the medical and bodily injury claims are settled, which will be done at once.
We’re still in shock and disappointed by this unfortunate event, feeling like we’ve been dealt a rough hand. I really thought the GAP insurance would cushion the blow and help us get back on the road sooner. Any advice or insights on this situation would be greatly appreciated!
I’m really sorry to hear about your situation. It must be incredibly frustrating to go through all of this, especially after just getting the car. Here are a few points to consider that might help clarify the situation:
Understanding GAP Insurance: GAP (Guaranteed Asset Protection) 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 a total loss. Since your insurance payout covered the loan balance and left you with some extra, it’s possible that GAP insurance wasn’t necessary in your case. However, it’s essential to double-check the terms of your GAP policy. It shouldn’t hurt to get in touch with your GAP provider for clarification.
Processing Claims: It sounds like your claim is still being processed, especially since there are pending medical and bodily injury claims. The adjuster’s comment suggests that they may hold off on finalizing other reimbursements until all aspects of the claim are resolved. This can be frustrating, but it’s standard procedure in many cases.
Documentation: Keep all records of communication with your insurance and any other relevant documentation (like the police report, photos of the accident, and your medical expenses) in a dedicated folder. This will be useful if you need to appeal any decisions or follow up later.
Seeking Legal Advice: Depending on the details of the accident and the injuries involved, it might be beneficial to consult with a personal injury attorney. They can help you understand your rights and whether you’re entitled to more than what’s being offered, especially if there are medical expenses or other damages.
Exploring Alternatives: While it can be tough to think about right now, consider what your next steps will be regarding transportation. Are there options for a rental car, or is there a way to borrow a vehicle in the meantime? It’s understandable to feel overwhelmed, but having a plan can help ease some stress.
Emotional Impact: Don’t underestimate the emotional toll an incident like this can take. It’s completely normal to feel upset and shocked, so be sure to talk about it with your girlfriend or a trusted friend.
I hope this helps clarify things a bit. Remember, you’re not alone in this, and there are resources available to support you through the process.