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GAP INSURANCE TERMINATED MY CLAIM

Escoman

Well-Known Member
My car Got totaled. I got rear ended. Im not online during the accident. My primary insurance settled for 25k plus. But i still have remaining balance of 9k. I bought the gap insurance from the dealership.They terminated my claim becuase they said i used it for commercial purposes. What should i do. Its really hard knowing that you’re not even at fault. You dont have the car anymore. And you have to pay 9k of your pocket.( my car was 2019 nissan altima SL)
Shouldn't have been using such an expensive car for ride share you need to read the gap contract
 

Ishurue

Active Member
My car Got totaled. I got rear ended. Im not online during the accident. My primary insurance settled for 25k plus. But i still have remaining balance of 9k. I bought the gap insurance from the dealership.They terminated my claim becuase they said i used it for commercial purposes. What should i do. Its really hard knowing that you’re not even at fault. You dont have the car anymore. And you have to pay 9k of your pocket.( my car was 2019 nissan altima SL)
Get a lawyer
 

DriveLV

Active Member
I made a lot of mistakes buying that car. And a lot of stupid decisions. Finance guy offerred the extended warranty, gap insurance and this century security thingy. And i fell for it. I purchased those addendum too thats why it went upto 34k
I don't have the patience to read the entire thread - so apologies if this has been mentioned:

I believe you should be able to get a refund on the extended warranty as you never used it (and never will). There may be a small administrative fee to terminate the extended warranty, but that would be minor.

Was the total price of the gap insurance charged upfront and rolled into the loan? If so, you should at least be able to argue for a refund of the unearned gap premium - if not a complete refund of the gap charge.

Not sure what century security is, but if it's not a tangible item (like a security system?) then you may have a shot at a refund also.

Read your contracts and terms/conditions. Many dealerships (even if they seem small/locally owned) are actually owned by multi-state corporations. Pursue your complaints through the dealership, to the owner, and up to Nissan corporate if you need to. Nissan will try to disclaim any responsibility for the dealership's actions (selling you a GAP policy that they knew you were ineligible for). They will say the dealership is a franchise and they are not responsible. Remind them that they allow the Nissan logo/name to be on the dealership door so they are responsible. Ask Nissan corporate if they want to be blasted on social media for the dealership's actions. This may provoke a positive response without having to invoke an attorney. Nissan may choose to lean on the dealership to make things right.

And as another poster mentioned - don't buy another Nissan. This issue could have happened with any dealer, but Nissan vehicles have had quality issue for a number of years. I've owned 3 Nissans and don't anticipate buying another one ever again (I actually refuse to buy any car that has a CVT). On my current Nissan, I'm on my second transmission (replaced at just over 90,000 miles).
 

Sariandan

Active Member
I didn’t read through all of this, stopped at page 4’ish. How did the GAO people know the vehicle was used for rideshare?

Did you let it be towed from the accident location without removing the trade dress?
 

Ta85

New Member
How did the gap company know you do rideshare??? My car was totaled last year off the clock and i had no problems with my gap coverage.
 

DriveLV

Active Member
How did the gap company know you do rideshare???
My understanding is there is some sort of database that insurance companies can access to determine if a car is used for rideshare. I think I read recently that Carfax will be including that type of info also. I imagine the info is coming directly from Uber/Lyft.

Remember - Uber/Lyft want to keep Allstate/Farmers/etc happy so that they keep their Commercial/App Rates as low as possible. I have little doubt that Uber/Lyft would share our info with the insurance industry if they could save $1/year.
 

nonononodrivethru

Well-Known Member
My understanding is there is some sort of database that insurance companies can access to determine if a car is used for rideshare. I think I read recently that Carfax will be including that type of info also. I imagine the info is coming directly from Uber/Lyft.

Remember - Uber/Lyft want to keep Allstate/Farmers/etc happy so that they keep their Commercial/App Rates as low as possible. I have little doubt that Uber/Lyft would share our info with the insurance industry if they could save $1/year.
Either way, be honest. Insurance fraud is no small thing.
 

Sariandan

Active Member
My understanding is there is some sort of database that insurance companies can access to determine if a car is used for rideshare. I think I read recently that Carfax will be including that type of info also. I imagine the info is coming directly from Uber/Lyft.

Remember - Uber/Lyft want to keep Allstate/Farmers/etc happy so that they keep their Commercial/App Rates as low as possible. I have little doubt that Uber/Lyft would share our info with the insurance industry if they could save $1/year.
Going along with that, Lyft gives you an extra 25 cents per ride if you maintain commercial vehicle insurance with Geico (unsure about others). So, yeah there is communication there.
 

islanddriver

Well-Known Member
My understanding is there is some sort of database that insurance companies can access to determine if a car is used for rideshare. I think I read recently that Carfax will be including that type of info also. I imagine the info is coming directly from Uber/Lyft.

Remember - Uber/Lyft want to keep Allstate/Farmers/etc happy so that they keep their Commercial/App Rates as low as possible. I have little doubt that Uber/Lyft would share our info with the insurance industry if they could save $1/year.
I don't know about other states ,but in New York insurance companies have the right to get info on weather you ride share or were on line at time of accident. It's part of the ride share law in New York State
 

25rides7daysaweek

Well-Known Member
Am i in the right thread lol.. I thought i click the advice thread on the forum. Thanks for the facts or info tho.
Post automatically merged:


And.......
And learn from your mistakes.
I personally wouldnt have told
anyone I didnt have to that
I was driving rideshare.
That includes getting your car
serviced or anyone who might
write it down.
Dont drive a new car for uber..
 

Seamus

Well-Known Member
Doubt there is anyone left reading the 6th page of a thread but here it is.

Advice:
1. If rear ended ALWAYS go thru the insurance company of the person who rear ended you. They are liable. NEVER go thru your own insurance, they have no motivation to get you the maximum payment.
2. Virtually ALL insurance problems you are going to have involve the collision coverage for YOUR car. Liability and someone else's damage are going to be covered by Uber/Lyft. Therefore, the BEST way to do rideshare is with a vehicle that is fully paid and worth under 5k that you can walk away from if you had to.
3. If you own a house or have any significant assets, you are a total fool to do rideshare without a RS add on or commercial insurance. Don't risk your house for Uber or Lyft.
4. Insurance rules and policies vary WIDELY state by state so be wary of the forum "insurance experts". Even if what they are saying is true it may not be true in YOUR state.
 

Christinebitg

Well-Known Member
NEVER go thru your own insurance, they have no motivation to get you the maximum payment.
Your insurance company will always find out. Always.

He collected for the value of his totalled car. His issue is with trying to get the gap coverage honored. Which by the way, is a separate policy with a separate company.
 

Seamus

Well-Known Member
Your insurance company will always find out. Always.

He collected for the value of his totalled car. His issue is with trying to get the gap coverage honored. Which by the way, is a separate policy with a separate company.
It's ok they find out, as you say they always will find out. The issue is the other insurance is more interested in making you go away and will "perhaps" be more willing to pay all your losses. In this case, he may not have even needed to go to the gap insurance if he played his cards right.

I got rear ended last year on the way to a pick up. Since there was no pax in the van I didn't even report it to Uber. (I was not hurt). I filed a claim with the person's insurance company that hit me. Apparently, they were so happy I wasn't trying to claim I could never walk again that they were very generous in the payout to me. My own insurance would never have gotten me the money I got. My Van was a 2007 with 225,000 miles on it. I was paid more than double the book value to "go away".
 

jegsmotors

New Member
My car Got totaled. I got rear ended. Im not online during the accident. My primary insurance settled for 25k plus. But i still have remaining balance of 9k. I bought the gap insurance from the dealership.They terminated my claim becuase they said i used it for commercial purposes. What should i do. Its really hard knowing that you’re not even at fault. You dont have the car anymore. And you have to pay 9k of your pocket.( my car was 2019 nissan altima SL)
Given that you weren’t doing rideshare at the time of the accident, I believe you have a case. You need to speak with an insurance attorney pronto! It’s my understanding that the determinate factor here is the amount of time that elapsed between the last time you were online and the time of the accident.
Getting a lawyer to look at this is a good idea. However, the reason the GAP insurer stipulates that the car cant be used commercially is because the extra miles depreciate the car so fast and dramatically increase the "gap" between what the car is worth and what is owed. So not being online at the time is not going to help.
 

Grokit

Active Member
A rideshare endorsement will normally mitigate the issue. About $35/mo.
You must have encountered a special situation where RS protected your GAP coverage, but it was the exception, not the rule.

Whew... Thx for clearing that up...
A RS endorsement on your personal auto insurance plan does not provide any sort of guarantee that the company providing you with GAP financial coverage can’t deny your your claim due to your using the car for rideshare, except under rare circumstances.

For example, if you have your personal auto insurance, a RS rider, and GAP financial insurance all through Progressive Insurance, they guarantee that they will honor your GAP insurance if you car gets totaled in a rideshare-related accident.

As @jegsmotors said above, doing Rideshare typically invalidates GAP protection because the companies providing this kind of protection are more likely lose money on the policies. The associated high mileage drives down the value of the car faster, leading to higher GAP payouts. So, companies like Progressive, who know you are doing rideshare, are going to price their GAP insurance at a higher rate.
 
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