NLIC.org

Rick Said:

How do I return a damaged financed car? Should I have them reposses? Consequences? Should I fix it first?

We Answered:

Never ever take your car to Wal-mart for anything. I'd fix it first before taking it back.

Carrie Said:

What is GAP Insurance?

We Answered:

You will purchase your new bike for a certain price. Once you drive it out of the garage its value is considerably less than what you have just paid. If you have an accident after just purchasing it and it is written off or if you have it stolen the insurance company will only pay you what it is worth at that time and not what you actually paid. You will very likely owe more finance on it than what you will get back off the insurance and GAP insurance will cover that shortfall.

Clarence Said:

can an insurance company cancel ur policy without your permission when u pay in full?

We Answered:

Yes they can cancel the insurance if you do not pay the additional premium that they are charging you. The additional premium is not a penalty for inputting the wrong information. The additional premium is what you would have been charged if they had the correct information to begin with.

If you choose not to pay the additional premium that they are billing you, they will cancel the policy and refund any unused portion of the premium, i.e. they will keep the part of the premium that represents the period of time you have been insured from the time that you activated the policy until the time that they actually cancel your policy. From your statement it appears that your policy is probably still in force but that they are giving you a warning that if you do not pay the additional premium they will cancel you--they must give you an actual date and time noting when your policy will terminate.

You can also choose to pay the additional premium and keep the policy. The thing to think about though is if this is the way the handle business at the beginning then how do you think they will handle any claims you present?

Frankly this type of misunderstanding is exactly why you should not be purchasing insurance through the internet or even an 800 number. Get a few references or recommendations from family or friends on local insurance agents in your area. Call up at least two or three and get a few quotes. Yes you might end up paying a couple of dollars extra compared to what you buy on the web but it will be worth it. If you a select a good agent, you will have someone that can explain the process, explain the policy coverages and also hold your hand through the claims process (if you should have one).

As you have now confirmed cheaper is not always better!

I hope this helps. Good Luck!

Rick Said:

gap insurance Question?

We Answered:

Well, my friend unfortunately it seems that the dealer might have played you. I think what the dealer was trying to tell you that if you bought this gap insurance, that when your lease is up, or when you're shopping for another car, thay will give you 1000 off the next purchase. Unfortunately if it isnt stated in the contract that you signed, and it isn't present on any other document from the dealer, than things don't look good.
Look on the bright side, you'll get out of this with no loss, and used car market is buyers market right now.
I just got an X5 in feb, it is the '09 model with 3500 mls on it for 65% of the price of a brand new one.