My car was totaled in January of this year. My insurance company paid my lien-holder and I also had GAP insurance. My lien-holder is now trying to say that I still owe over $800 after the payments from my insurance and after my GAP. I was told at the time of purchase that GAP insurance is exactly as the name implies, it covers the gap between what the insurance pays and what I actually owe. The accident was not my fault. My brakes failed while I was parking. No other cars involved. I have carefully read my GAP agreement and I am definitely not part of any of the exclusions. What do I do?
Hiring an attorney to represent you likely would cost more than $800. Having a consultation with an attorney may cost you a few hundred dollars.
Have you contacted the insurance company and the GAP insurance to see why the lienholder has not been fully paid?
What may have happened is that you stopped paying once the car was totaled and because you were not paying, the lienholder started to charge you late fees.
You need to review with your attorney the contract you have with the GAP insurance to see what the insurance is obligated to pay. Since you likely do not have a background in insurance or contract interpretation, you may not have fully understood the contract. Or, it could be that you are entirely right and that the GAP insurance needs to pay the $800.
You might spend a few dollars and meet with a personal injury attorney. They have likely seen this issue before. One thing you are going to want to have is the "balance due" demand by the car creditor and the check and release sent by the insurance company. Possibly, the car creditor signed a release stating they had been paid in full. Good luck!
Please remember to mark my answer as "helpful" or even the "best" if that is the case. My response is general information not intended as legal advice or to create an attorney-client relationship. Seek advice from a qualified attorney to see how the law fits your specific facts. I am licensed to practice law in Washington and Oregon.
Many attorneys offer free consultations. You should contact an attorney in your area for a consultation and do a cost benefit analysis.
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