Arizona man Manny Munoz bought a $60k BMW X5 in 2020, and because he knew his vehicle depreciates quickly, he bought GAP insurance in addition to his regular car insurance, to make sure even if his vehicle got totaled, he would not have to pay out of pocket even if he was "upside-down" in the loan (i.e. the vehicle was worth less than what was owed on financing).
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| Photo by krakenimages on Unsplash |
GAP actually stands for "guaranteed asset protection", so it's an acronym / backronym, and it is a type of insurance you can buy. Manny bought his from Safe-Guard.
In Late 2023, Manny had an accident, and vehicle was totaled. His regular insurance payout was about $26K. But he actually owed $45K on the vehicle, so the GAP should cover the remaining 19K, right?
As it turns out, his GAP insurance carrier found a 60 cent error in the original loan paperwork. He financed 60 cents MORE than the actual loan amount. Safe-Guard used that 60-cent discrepancy to deny his claim. After 7 months of negotiation went nowhere, Manny went to his local TV News's Consumer Reporter for help.
And this time, his GAP insurer responded, after a little prodding from the reporter. And looks like Manny will get his payout after all.
What's the takeaway? Read the paperwork carefully.
See original Yahoo Finance Coverage: https://finance.yahoo.com/news/arizona-man-says-gap-insurance-110100024.html
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