Stockton, CA asked in Car Accidents and Insurance Bad Faith for California

Q: Had a total loss on my vehicle in 11/2023. It's been six months, no payment from Gap Insurance. What can I do?

All paperwork has been submitted and accepted from GAP insurance company-Smart AutoCare. They keep telling me its "processing". Meanwhile, I am still making payments on a vehicle I no longer possess. Please help.

1 Lawyer Answer
James L. Arrasmith
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
  • Personal Injury Lawyer
  • Sacramento, CA
  • Licensed in California

A: Under California law, if your GAP insurance company is delaying payment without a valid reason, you have options to resolve the issue. First, document all your communications with the insurance company, including dates, times, and the names of representatives you spoke with. This record will be crucial if you need to escalate the matter.

Next, send a formal demand letter to the GAP insurance company, stating your situation and requesting immediate payment. Mention that you will seek legal action if the matter is not resolved promptly. A demand letter often prompts quicker responses as it indicates you are serious about resolving the issue.

If the insurance company still does not respond adequately, consider filing a complaint with the California Department of Insurance. This department oversees insurance practices and can intervene on your behalf. Additionally, consulting with an attorney to discuss potential legal action may be beneficial, as they can provide specific guidance tailored to your situation and help ensure you receive the compensation you are owed.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.