My question is i had Sabco insur., and they canceled me 3 days b 4 i had an acc. i did have full coverage. My husband called about the letter received from them saying we didn't have insurance anymore with them b cause of a a late payment, and they said 2 disregard the letter that it was a mistake so 3 days letter i wrecked my vehicle. The insurance canceled on the 10th, and i had the acc. on the 13th, but i do also have Gap insurance through the loan i am paying on right now for the car. I am wondering if Gap will help at all. I have talked 2 some of there employees, and they said yes they could pay some, and then some of them said they could not pay b cause of my other insurance hasbn't paid so i am wondering if any of u know the answer it would give me great relief 2 know what i am heading 4. I am still paying on the loan, but 1 of the employees said i should try 2 get another loan and just have my other 1 tacked on 2 that, but i really don't think they would loan me that much since
Answer:
If your insurance was cancelled, then they will not cover your wreck. You said they cancelled, but then they said to disregard the cancellation letter. Does that mean they are going to pay your claim? Regarding gap insurance, this has nothing to do with the insurance company paying your claim.Gap insurance comes into play when you owe more than the value of the vehicle. It covers the difference, that's all.
Ok. You will want to talk to the person at Safeco that told you you still had coverage, and then talk to your claims representative with them. Why did they tell you to disregard the letter? The only reason I can think of is that maybe your payment was received by them, and the letters crossed in the mail? If that is the case, then coverage may apply if they received your payment prior to the accident. When you are in an accident, and the damages to your vehicle are equal to 75% or more than the vehicles actual cash value, then the vehicle may be totaled by the insurance company. The insurance company pays you ( or the lender in your case) the actual cash value and sometimes this will pay off the vehicle.The insurance company retains the vehicle. Other times, you may owe more than what the vehicle is actually worth. GAP insurance picks up where the auto insurance company left off, and pays off that balance that is still owed when the vehicle is totaled. You may also be able to "buy" the vehicle back from the insurance company for what they would be able to sell it for at auction. They would then let you keep the vehicle, and subtract the amount from what they settle with you for. Either way, in this situation, it's important to follow up with Safeco, and their claims department, because if the payment due was received prior to the accident, you should have coverage. Good luck, and try State Farm next time :) Their claims service and customer service are superior to any insurance company I have ever dealt with.
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