Legal Question in Insurance Law in California

non-Gap Insured does't want to get the short hand:

Hi,

Back in Oct. 2007 I financed a 2002 Dodge Neon. A week ago it was in an accident & it was deemed as a ''Total Loss''. Up until now, I did not know what Gap Insurance was & the salesman, whom also is my neighbor did not offer it. What the insurance co. is offering does not even pay half of what we owe to the bank. My question is: In the state of California, was it the salesmen's responsibility, (lawfully or anyother), to sell us / inform us of Gap Ins. I know we don't have to accept this lowball offer from the insurance co. but, how does this work now b/c they are threatening us w/certain statements such as the bank will reposess the vehicle & they will no longer pay the storage fees as of today. I understand that these are scare tactics to put us under the gun. If the bank would settle for a lesser amount & that would be how it's to appear on my credit & my insurance also reimbursed Me, My downpayment on that vehicle so I can put it down on something & have a vehicle, I would settle. How do I go about this? What are my rights? Can you suggest any links to laws..etc so maybe I can have proof behind statements on paper & prepare a letter & have it notarized?

Thank you so much for your time, help & knowledge.


Asked on 8/01/08, 1:19 pm

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

Re: non-Gap Insured does't want to get the short hand:

The salesman is an insurance agent for this transaction, and he has only a duty to speak truthfully to answer what you asked for. He is not a general counsellor re insurance.

But lenders always carry their own insurance on vehicles they finance. Make a claim under the lender's policy for the damage to the vehicle. If you are persistent this may work.

And the value placed on the car by your own insurer is not necessarily the value you are stuck with. Look in the Auto Trader, LA Times, etc., and demand a copy of the appraisal info from your insurer. Then you can compare your own research with what is probably a computerized generic report.

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Answered on 9/02/08, 1:23 pm


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