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What is gap insurance?

Can i sue the (at fault person) for the gap difference between the pay off and what her insurance paid?

  • My 09 leased Corolla was totaled after this lady hit me, now her insurance declared my car a total loss, i didnt buy a gap insurance when i leased the car and now i know that what her insurance is paying not gonna cover the pay off. so can i sue the lady for the difference between what her insurance paid and what i had to pay (the gap)?

  • Answer:

    Yes you can sue her for the difference. However, it is highly unlikely that you will win. The gap between what you were paid and what is owed on the car is depreciation. A good way to look at depreciation is the value of the use you have had of the automobile between the date you purchased it and the date of the loss. Courts usually determine that you are to be made whole after a loss, i.e. left in exactly the same condition that you were in. Unfortunately you were already made whole. You have been paid exactly what that vehicle was worth at the time of loss. Neither the insurance company nor their client is required to pay you the depreciation or interest on the vehicle. To state it another way, if you can purchase a brand new 2009 vehicle with 0 miles for $26,000 today would the same model 2008 vehicle that has been used for 9 months and has 9,000 miles on it be worth $27,600 (includes the interest & tag charges). Of course no one would argue that both vehicles have the same value yet that is what you are asking that the insurance and this lady do. Unfortunately in this case the truth is that you should have purchased the gap insurance. Gap insurance is very important when a vehicle is leased or when you have given a small down payment. I am sorry you have had to learn such a tough lesson. Good Luck! P.S. In response to your last edit comment--the bottom line is that contrary to your statement your car was no longer new it was "used" and you are therefore not entitled to new for old. If everyone could get a new car when they crashed because they originally had a new car, I can assure you there would be a substantial increase in claims. Sorry!

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Other answers

Yes, you can sue for the amount of money you are out.

hr cubs girl

No, she is only responsible for paying the value of the car at that date and her insurance paid it.

growing inside

You can, of course, attempt to bring suit, but your chances of financial recovery are very slim. The rationale is that the at fault driver's insurer covered your loss fully. What was your loss ? ONLY the current value of the car involved. The amount of your loan is irrelevant. That is why there IS gap insurance. The concept is very similar to that of homeowner insurance. If you blindly took a mortage(s) for $400K on a $280K value house, what will the insurer pay ? The value of the house, of course, and NOT the value of what you owed on same. Another lesson learned, I'd venture.

acermill

Sure you can sue. You can sue for anything these days. Will you win: nope. If you had not reported the claim to your insurer but instead sued her in court for the accident, a judge would have awarded you the same thing your insurer paid you: the depreciated value of the vehicle (this is why the insurer paid you the depreciated value in the first place). No court is going to now award you something they wouldn't have awarded you in the first place. You chose not to buy the gap insurance, time to live with your decision.

Gambit

You can try. I would, even if I lost. You can sue in small claims court where no lawyers are allowed. There is just a small court fee to file. You just represent yourself. And, if the other party does not show up, you win. And, who knows what the judge may do. Make sure you take the insurance companys estimates and letters and payoff amounts with you. Also, take a copy of the value of the car off the Kelly Blue Book website. All the info you just the judge will help. Good Luck.

car253

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