If tax payers are legally required to have car insurance, the car insurance companies need to be legally required to cover ehat they're supposed to cover.
You are required to have liability insurance, to cover the damage you cause. The lender is the one that requires collision insurance for the damage on your own car. The "Gap" is to cover what the difference in what the insurance company pays (ACV) on your car, and what you owe. If you don't have a loan that requires it, you don't need insurance on your car. Liability just covers the other person's car if you are at fault in an accident.
Gap insurance is to cover the difference between what the car is worth and what you overpaid for it. Not the insurance company's problem you paid too much and now owe far more than the car is worth.
Exactly! And it takes a public shaming to get them to pay. I hope everyone watching this remembers never to insure with them. They'll lose more than $18,000 in a hurry!
Recently, a friend of mine had their gap insurance company hold up their claim process for a while with a long series of document requests. The one that stood out, was them demanding to see the actual check used to pay for the car. Now it all makes sense. Also, she still had to make payments on the vehicle during the process that wouldn't be reimbursed. Another way for them to pay less.
@@Chicago_Native Yes, that's another thing. This guy has been waiting for months. Even if the insurance pays up now, they collected interest on that money all that time while this guy and your friend probably had to PAY interest.
As an attorney, I can tell you that a 60-cent discrepancy is absolutely NOT a defense to paying the claim. This denial is obviously being done in bad faith, which violates the implied covenant of good faith and fair dealing which is inherent in all contracts. The car owner can -- and should -- sue the insurance company for the full amount they owe, *_plus_* punitive damages. And if he hasn't done so already, he should file a complaint with his state's insurance commissioner.
I was in court and judges dismissed a case with a contract that admitted guilt. A totaled car. The United States Supreme Court upheld the judges and jury decisions.
@@stuwest3653 Give the insurance company a chance to correct a computer glitch??? First, this wasn't a computer glitch. The claim was DENIED by the insurance company. Whoever received the claim and wrote the denial letters wasn't a computer. Second, the car owner fought the insurance company for _seven months_ before finally going to "On Your Side" for help. The insurance company had _seven months_ of chances to pay the claim.
They definitely did it on purpose. I considered it fraud when insurance companies take your money then when it's time to pay they look for any small detail to not pay. Why did they take his money with out doing their due diligence in the beginning. It's because they are hoping this will happen and nobody will fight them.
Why pay $18,000 when you can reject the claim over 60 cents? Of course it was on purpose! Shame on Safe-Guard Insurance for trying to screw this guy over for 7 months
What "company " are you talking about? The insurance company had no participation in the credit union paying off the car dealer when the car was purchased. Neither one of them would have any motivation whatsoever to set up a situation for a claim denial.
That is exactly what I was thinking. Or let him pay the $.60. Their obvious goal was to use ANYTHING to avoid paying the whole $18,000. But somehow that is not a crime. Seems like breech of contract to me. They sure didn't let the $.60 stop them from collecting the premium for 4 years.
@@frotobaggins7169 It's the car seller who probably;y just ignored the .60, the insurance company will spend endless time to find anything they can find to deny paying, some insurance people get a commission on how long they can stall paying a customer before having to shell out the money.
@@frotobaggins7169 _"Seems like a breach of contract to me."_ It's _absolutely_ a breach of contract. A 60-cent disparity is *_not_* a defense to paying the gap insurance claim. It's disgraceful. If it weren't for the fact that the car owner went to a local TV station and apparently got the issue resolved, I would strongly recommend that he look for an attorney and sue the insurance company. If I were licensed in Arizona, I'd be glad to handle his case.
@raymondmesa8258 It doesn't matter. It's an excuse to keep the money. Or hold the money as long as they can. Keeping it in their account allows them to use it and make money, even if they later have to pay it.
@@LazyTeeRex They should, but they don't. People buy what they can't afford. If you have to take a loan that big on a vehicle like that, drive a used Camry instead or something you can buy outright in cash.
Sixty cents isn't keeping Safeguard from paying the claim. Safeguard is using it as a way out from paying a claim. What a joke! I hope this will alert people to not do business with that insurance company.
When my grandfather died they denied my grandmother payment because they claimed he died the day before the end of a waiting period they were never told about. I truly HATE insurance companies 😡
When my Dad died there were no issues with waiting periods or anything like that as far as I know but they did everything they could to not pay the full amount of the life insurance policy. They sent my Mom a check for about 1/5th of the amount, she called them and complained. They sent another small check, she called them again. In total she had to call them 5 times before she got the full amount.
Yea this is so true i hope someday one responsible senator or president is going to make changes to how they pay their claims. They will make you bleed before tbey even look at your claim. We have a claim with Geico and it took us more than a year to get paid with so much less than our car’s value.
The other problem is some new cars have bumpers that are nearly non existent and low rear hatches, so a small impact damages the rear hatch and surrounding vehicle body instead of just the bumper.
4 years later still owes more then half the value of the car-at the time of purchase. 10 year loan? Seems like Im entitled to this no matter if I can actually pay for it. Think about the value of the car when he would have paid it off and owned something worth $12. Cars value drops by almost half when you drive it off the lot, its always been that way.
Wow, screw SAFE-GUARD! Any underwriter with any common sense would have just handled it. Instead, they tried to do the wrong thing over a minor typo. No one should ever use this company for GAP. - Good job you guys for helping this poor guy out!!!!
He owes $45,360 not $70,000. You don't add the insurance payout to the debt you subtract it. $45,360 minus $26,709 equals $18,651, that's what he has left to pay still after using the insurance payout on his loan. The GAP insurance should be covering that $18,651 and probably will since that insurance company is going to get a ton of bad publicity from this.
@@-o-The-Duke-o- Okay, I see what the problem is. The announcer used a poor choice of words. He misleadingly said the insurance company paid the car owner just over $26k, which was the value of his BMW, "but he still owes about $45,000 on the vehicle." What the reporter *meant,* and should've said, is "...but at the time of the insurance payout, he owed [not "still owes"] $45,000 on the vehicle."
I was in the body shop business. I did a customer pay job. Customers says he will get reimbursed from his insurance company. I got paid with no problems. I received a call from his insurance company claiming that I over charged him $ 5.00 for an item. The agent and I had a long dialog on the $ 5.00 subject. I kept my $ 5.00
"SafeGuard" (of their own money only) would have found something else if there wasn't a 60 cent discrepancy. That's all these 2nd rate insurance companies do; take and never pay.
It also pays to check what the insurance values a vehicle you are buying also. If it's not going to be insured for the amount paid and you have to buy gap insurance. Wake up people. Dealerships are robbing us. And insurance companies have become the same.
Markets change everyday. Nobody can predict what the value of a car will be tomorrow, let alone 3 years down the line. Don't speak on things you don't understand
@@P2B_JCYes you can if you buy toyota or honda. At least you can predict that the value will hold. You can also predict that the value for a beamer or Benz will go to shxt the minute you drive them off the lot
@SL-pg4dh that's not true. You can't predict what the market will be tomorrow. Anyone who says otherwise is an ignoramus and should not be listened to. You can guess, but a guess is not truth.
This reminds me of an issue I had back in the late 90's.. I bought a car from a guy that inherited it from his late father. Both men, Father and son, had the same name, BUT.. when this fellow signed the title over, he signed it with "jr" at the end. I didn't think anything of it until I tried to get it registered at my local title clerks office. Since the signed name didn't EXACTLY match the name on the front, they would not issue me a title until I could get it fixed. We had to get together and go back to his clerks office (different county) with his paperwork from his father's estate and get a new title issued in HIS full name (which I paid for) and THEN he could sign it over to me right there. It was aggravating, but it had to be done. Lesson learned. If you buy or sell a vehicle (according to DMV), make sure the seller line on the title is EXACTLY like it's written on the front! Including the address!! I've bought and sold a few since then, but I assure you, I double/triple check to make sure it's correct!
He didn’t have a choice. He had to borrow 60 grand for a car. They dragged him out of his bed, drove him to the dealer under the gun, and squeezed his hand until he signed the loan applications.
I tired to estimate his payments... With a principle of $60,517, 96 months term, at 12% APR, after 36 (3 years since April 2021) payments, the outstanding principle would be $44,216. This guy still owe $45,360, meaning his terms are worse.
I'm betting that was done on purpose by the insurance company knowing he probably would not notice and giving them a way to try not to pay....this needs to be thoroughly investigated as I'm quite sure there are many customers that have been done the same and are not yet aware.
Shows that the ins company is willing to do anything they can to save money and not pay out, it’s obvious that the client/victim had good intentions from day one by paying extra for that extra coverage. Did the ins offer to refund what he paid extra since the GAPins was “null and void” due to the .60 discrepancy? Of course not.
Lol. The anchor saying "he didn't have a choice". Did they have a gun to his head to purchase a 60k car? It may have been more difficult to purchase a car, but he didn't need to purchase a 60k car. Get real.
First of all, check all the maths and don't sign anything that doesn't match up perfectly. But, his biggest mistake is paying that much for a pile of shit BMW. He could have bought a new Highlander for about half. No tears for the 1%'ers.
@@godsson8035 if it was his fault, his own insurance wouldn't have covered it and damage cannot be of no one's fault as two vehicles were involved, he was rear ended
what difference does it makes? Whether it was his insurance or the offender’s insurance, his pay out would still be the value of the car at the time which was 26k. His real issue was with his gap insurance which was a separate from on insurance. And gap has to be self insured
@@SL-pg4dh no. The third party insurance has to make him whole. His own insurance has stricter terms always, for example actual cash value than replacement value. This is why you always pursue the other person's insurance if you have the means to do so and they carry insurance
Idk why you're being dumb. Was it stated he couldn't pay it??? He PAID for an insurance protection and was trying to use it to cover what was legally and contractually obligated to fulfill in a total 💯 loss in the vehicle. Hope you get the same thing one day and have someone say you shouldn't have bought the thing you loved because you couldn't afford it, even though he was responsible enough to get the coverages needed to cover his butt financially. Plus this entire thing is not HIS fault. SOMEONE rear ended him causing his total loss! There's so much to this story. And hopefully he gets to sue multiple companies for there lack of attention and inability to process loans. It's the banks fault for not submitting the information correct which in due time caused damages/interest accruement over the loan that was Still open because he couldn't closed out that vehicle is Full Payment, It's also the GAP, insurance companies fault for accepting the documentation that wasn't accurate which yet again caused undue stress and punitive damages to the customer. There where multiple people that could've stopped this fiasco. Please be better and stop commenting BS.
It's very possible that the finance guy at the dealership messed up on the loan amount when filling out the GAP contract and sent the GAP company the wrong amount financed.
The attorney general needs to have a conversation with that company. This is ridiculous and should never have happened. There's no need to find out who made the mistake and then go through the process of using them when all a company needs to do is realize a clerical error and move on.
So let me get this straight. Dude buys a new car and only has 25% of the principal paid off four years later? Yeah dude does not need a 60k BMW, he needs a Honda Civic. Loan woulda been paid off by now, problem solved.
Ins compamies are leaches on society. I had 2 NO FAULT claims in 1 year and they raised my premium 100.00 a month to recover the money tjey had to pay out. Its criminal but somehow legal
They took his money no problem didn’t care to tell him till it was pay out time then they got a microscope and found the smallest thing which legally would require a court case
Insurance companies don't want to pay whether its gap insurance or mechanical insurance. They will use any tactic and insult your intelligence while they're denying your claim.
My guess this is a common practice so they can deny claims for gap insurance. Now they are getting caught publicly so they are going to settle asap before others come forward 😂
Should sue them for millions, that company did that on purpose. No telling how many people that did that to on purpose. Make an example of that company
1) Gap insurance is a ripoff and way to make extra money. Every insurance company should offer loan/lease payoff - it’s only about $2-5 per month and if they don’t I’d find a different carrier (some don’t charge for this; but only cover 3-4 years). 2) States need to raise their ridiculous minimum required coverage of $10k to at least $50k. Dealing with underinsured drivers can be a nightmare.
Unfortunately, in a state where both political parties are essentially the same anti-consumer/pro-business party and where "Ditat Deus" should be replaced by "Caveat Emptor," businesses are more or less free to do anything they want to their customers. The laws, it seems, do not often require businesses to do what is right - at least, not for all intents and purposes. This is the price consumers pay for "less government," "smaller government," and low taxes.
Disgusting. My best friend’s family owned an insurance company for several decades. A client bought a new Mercedes (his dream car) and called my best friend’s dad (the company president) asking him to provide coverage so he could drive it home from the wharf Friday evening - my friend’s father said “sure, the premium is $xxx, just drop the cheque off Monday morning, you are covered from now on.” Would you believe the car got hit by a truck on the way home and was totaled? The owner called my friend’s father and was told “I said the car was covered, just drop the premium off as agreed, and we will write you a cheque for the car.” An honest deal done by honorable people.
He should have had his gap insurance with his loan from the bank or the credit union from which he got his loan rather than a 3rd party. It’s cheaper and they won’t try to weasel out of coverage over their loan mistake.
Thank you folks for helping this man get his issue resolved! There should be regulations against any business "enriching" themselves at a customer's cost based on a technicality like this.
These secondary insurance companies are notorious for this kind of thing. Not all are bad, but my own experience with them has been less than positive.
Drive within your means. The insurance money will cover that stupid loan. He's starting with a clean slate. Dude! Go buy a cheap reliable used car with cash. Imagine no car payments!
Long story short, my BMW got totaled about a year ago. I had the option of fixing it or totaling it out. I chose to total it out because I knew it would never drive the same. But in the meantime talking to the insurance company I asked if I could buy the total car back so I can fix it myself and they explained to me that they would be stripping the car for parts and selling the parts to make back all the money that they just gave me for the car. I believe I got $16,000 for a 7-year-old BMW, and I was really happy with that. The car had front-end damage, passenger side damage, both doors and rear end damage it was in a 5-car pile-up, which was not my wife's fault, and the car came out a champ. Unlike two of the other cars that were in the accident, which turned into pancakes, no joke flattened pancakes. Most people don't understand how expensive the parts are to put back on those BMWs. The headlight alone was $1,500. Just to replace the passenger seat was $5,000, and those prices are from the BMW dealership, not aftermarket junk. In conclusion, the insurance company probably made back all the money plus some for that X5 for totaling it out.
We need Ethical laws and common sense laws when the law itself isn't clear or doesn't make Ethical sense. These insurance companies have way to much leeway when it comes to denying claims on technical things like pennies. This practice must end and Ethical and common sense laws should superseded any insurance Stupidity Denial Claims. While the executives pay 20k to fill up there Yachts with Fuel to go away for a weekend. They want to snake the little guy. This is why we need new leadership in American and a New and improved Democracy as this one does not work for the people at all.
Wait, so the owner bought gap insurance which can cost $1,000+ over the term of the loan, but when something happens, they don't pay out because it's an error? Then why charge and process the gap? If there was any error at the beginning, the gap insurance would have notify right away or refund his money. In other words, they were hoping he doesn't total loss his vehicle, but also having an excuse to tell the owner tough love when it does because they have an excuse to deny the claim.
