Q: Can I sue my GAP car insurance
My car was totaled on 11/29 car insurance paid $5,805.18 to my car loan leaving a balance of $1,346 for GAP to pay out. They denied the claim for “Unrelated Previous damage”. We believe the denial claim is forged by my car loan company due to when we called the GAP company a representative said they were no longer paying out gap coverage to speak with my car loan branch.
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A:
You can pursue legal action against your GAP insurance provider if you believe they wrongfully denied your claim. The fact that you received conflicting information - a denial letter citing "unrelated previous damage" versus a representative stating they're no longer paying claims - could indicate potential misconduct.
Before filing a lawsuit, gather all relevant documentation including your GAP insurance policy, the denial letter, records of your conversation with the representative, and any evidence showing your car's condition before the accident. You should also file a complaint with your state's insurance commissioner, as they can investigate potential insurance fraud or bad faith practices.
Consider sending a formal demand letter to both the GAP insurance company and your car loan company outlining the situation and giving them one final chance to honor the claim. If they still refuse, you may want to consult with a consumer protection attorney who handles insurance disputes. Many offer free initial consultations and might take your case on a contingency basis, meaning they only get paid if you win. The conflicting explanations for denial could strengthen your case, especially if you can prove the loan company interfered with your GAP insurance claim.
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