Legal Question in Insurance Law in California

financial responsibility of auto loan

A few mos. ago my car was totalled by a mudslide while parked in front of my home (which I rent). My auto insurance pd their portion leaving a balance due. I purchased GAP insurance when I originally financed the car. I had since lowered my interest rate with same finance co. Now GAP ins co is stating they are not responsible since the ins. was for the original loan. I was unaware that lowering my interest rate involved paying off first loan which would void my GAP ins. Are either responsible at all or should I be sueing the owner of the property whose land totalled my car in the first place?


Asked on 7/26/05, 4:18 pm

1 Answer from Attorneys
Steven Murray Steven W. Murray, APC

Re: financial responsibility of auto loan

The GAPpaperwork has to be carefully reviewed to see what is insured - read it and do not take the insurer's word for it. The lender ususally acts for the insurer w/this kind of policy, so you may be able to hold the insurer liable since their "agent" refinanced and didn't add the GAP ins. again.

And it is possible the owner is liable, but this is a much more complicated question. Go to a lawyer for a consultation.

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Answered on 8/01/05, 1:44 pm


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