01 Nov Buying A New Car? Watch Out For Dealer Added Insurances! Part Three
So, you purchased GAP insurance, credit insurance and a vehicle extended warranty in spite of reading Part One of this series of articles, and you signed the agreement without reading it, or you were rushed into signing (Part Two).
Well, that’s the worst of it, right?
What if you don’t do everything you have to do for those insurances to pay off?
Such was the case with client number two.
My second client came in after he had totaled his car. He had purchased GAP insurance but the insurer refused to honor the claim.
When I looked at the GAP policy and his auto insurance policy the problem became clear: His auto insurance did not include collision insurance, and the GAP insurance policy required that the insured buyer maintain collision insurance.
Since there was no collision insurance, the GAP policy did not have to pay.
Now this client thought they had all the insurances he needed and he was never told otherwise. Now he is stuck with a monthly note and he has no transportation.
The moral of this story is that if you buy insurances like GAP insurance through the dealership, which is not recommended, be sure to take the time to read the policies. That way you know that you are doing everything required of you so that the insurance policies are valid if you have to make a claim.
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