Can gap insurance deny claims for DUI?
Asked by: Hyman Corkery | Last update: April 19, 2025Score: 4.1/5 (49 votes)
Why would gap insurance deny a claim?
Yes, gap insurance may deny a claim for several reasons. The most common reasons for claims denials include not having the proper documentation, not making the agreed loan payments, filing a claim for negative equity, normal maintenance or repairs, and getting into an accident where your car isn't totaled.
What is not covered by gap insurance?
Remember, gap insurance is only for total losses, though. It does not help with smaller repairs or routine maintenance. For instance, if you run a stop sign and get hit, but your car is only somewhat damaged, gap coverage would not apply.
Will insurance cover an accident from a DUI?
Insurance Premiums and DUI Convictions in California
Insurance companies may cover the costs associated with drunk driving accidents in California. However, such an accident often leads to monetary consequences for the drunk driver, especially if they caused the collision.
What invalidates gap insurance?
If the motor insurer does not pay out then you cannot claim on the GAP. Examples of when your motor insurer may not pay out would include where you have been negligent in leaving the keys for vehicle unguarded. Other examples would include drink driving or using the vehicle for excluded uses like courier or taxi use.
How do I make a claim on my gap insurance policy
Why won't gap insurance pay?
GAP does not pay out if the insurance company deems your vehicle a total loss and you do not carry comprehensive and collision coverage. GAP does not include costs beyond the difference between your loan balance and the car's value. This means it does not cover missed loan payments or extra rental car costs.
What cancels out gap insurance?
You can cancel gap insurance and request a refund if you sell or trade in your car, want to change insurance companies or no longer owe more on your loan than your car is worth.
Does gap insurance cover a DUI crash?
Gap insurance, which covers the difference between what you owe on your car and its actual cash value if it's totaled, generally does not cover accidents caused by DUI.
Can insurance refuse to pay if you were drunk?
Intoxication Exclusion Laws
ERISA insurance carriers are not legally mandated to cover any losses that result from the insured being intoxicated, or under the influence of drugs not prescribed to them by a physician.
What exactly does gap insurance cover?
Gap insurance stands for Guaranteed Asset Protection insurance. It is an optional, add-on coverage that can help certain drivers cover the “gap” between the financed amount owed on their car and their car's actual cash value (ACV), in the event of a covered incident where their car is declared a total loss.
Will gap insurance pay me?
When your loan amount is more than your vehicle is worth, gap insurance coverage pays the difference. For example, if you owe $25,000 on your loan and your car is only worth $20,000, your gap coverage covers the $5,000 gap, minus your deductible.
What is the waiting period for gap insurance?
Car GAP insurance covers theft. Most insurance companies require a 30-day waiting period just in case your car is recovered. After the waiting period, your insurance provider will need a copy of the police report before they agree to pay the claim.
Why would an insurer reject a claim?
Insurance companies deny claims for many reasons, such as insufficient evidence, missed deadlines, or policy exclusions. If your insurance company denied your claim, you can file an appeal, agree to mediation or arbitration, or take the insurance company to court for bad faith.
When should I decline gap insurance?
You may cancel coverage for several reasons including selling your car or switching to a new gap insurance provider. You might also cancel when your loan balance is less than the car's actual cash value. You may receive a refund for your gap insurance if you've paid for your coverage upfront.
What is a gap exception in insurance?
A gap exception is when an insurance payor covers an out-of-network provider at an in-network rate. Network gap exceptions happen when there is a gap in coverage (aka a network deficiency).
Does insurance cover if you get a DUI?
If I'm in an accident while driving drunk, am I covered? Yes. You're covered up to the limits of your policy for any accident, regardless of fault or if you were under the influence of alcohol or drugs. That includes damage to your car or someone else's property as well as their injuries.
Can insurance deny a claim for alcohol?
AELs allow insurers to deny health claims for injuries or illnesses related to alcohol intoxication. We found that some states still have AELs, while others have explicitly banned them and prohibited insurers from applying alcohol exclusions (AEs) to their policies.
Do I have to tell my insurance company about a DUI?
You are not legally required to tell your insurance company that you were convicted in a court of a DUI in California. However, as we've mentioned, the company will find out about the DUI anyway, when it is time to renew your policy. Keeping the information to yourself doesn't usually serve your best interest.
Why was my gap claim denied?
If the gap insurance company discovers there was any fraud or misrepresentation (you lied) on your application for coverage, your claim could be denied. The vehicle isn't a total loss. Only total loss claims are covered by a gap policy. The claim exceeds the policy limits.
Does gap insurance automatically kick in?
Does gap insurance automatically kick in? No, gap insurance doesn't automatically activate. It comes into play when your vehicle is totaled or stolen and the payout from standard auto insurance doesn't cover the remaining loan balance.
How do I check my gap claim?
Please contact Protective at 800-432-4566 between the hours of 8AM – 6PM Central Time to inquire on the status of your claim. Please have your GAP addendum/policy number or your claim number ready when you call.
What does Gap not cover?
Gap insurance covers your vehicle but will not cover other vehicles, property damage, or bodily injury.
How much is a typical gap insurance refund?
Car and motorcycle owners seeking to save money can calculate their gap insurance refund by reviewing how far they paid in advance and how much remains on the loan. If you take out a 24-month loan and pay it off in 20 months, you can receive a gap insurance refund equal to four monthly premium payments.
Is gap insurance a bad idea?
In some situations, it doesn't make sense to get GAP insurance. For example, if you own a vehicle outright or owe less on it than its current cash value, GAP insurance won't do you much good. If you're buying a brand-new vehicle, consider getting GAP insurance. Most cars depreciate as soon as they leave the dealership.
Can I sue gap insurance for not paying?
Some reasons for GAP nonpayment are legal, and others are illegal and designed for the GAP Insurance company to avoid paying on legitimate claims. The short answer is yes, you can sue GAP Insurance and fight back against an illegal denial or lack of full payment.