Try This For A Gap Insurance Refund
Many consumers who purchase gap insurance from a car dealership or finance company attempt
to get a gap insurance refund when they find out the same coverage could have been purchased
for far less money from any number of brand name insurance providers.
Others who purchased gap and are now seeking a refund may not have needed it in the first
place. In New York State for instance, the cost of gap coverage is automatically included in the
monthly lease payment, but the salesperson might have sold you a policy anyway.
Another reason you might not have needed gap coverage, but now want a refund, is if a gap
never existed. In other words, if the loan amount and the value of the car you just purchased are
approximately equal, there is no gap in the financing to fill. A situation like this often exists with
the purchase of a used car two or more model years old.
Whatever your reason(s) for seeking a refund, some attempts will be met with greater success
than others. One instance where it might prove difficult to obtain a refund is when everything
was done above board and you try to cancel after the specified cancellation period.
However, if you just signed the contract, it should include a clause allowing you 3 days to change
your mind. This clause is known as the right of rescission and is included in most consumer
contracts.
The Small Claims Solution
In cases where you feel you have been mislead or victimized by unethical behavior, the best
place to seek a remedy is small claims court. Small claims court is informal, inexpensive, and
designed especially for situations like this. Small claims court is usually administered within the
county or district court house where routine matters such as traffic offences are adjudicated.
As mentioned, small claims is informal and low key. You, the plaintiff, tell your story to the judge
and then the defendant gets his turn. Once the judge hears both sides of the story and examines
the evidence; phone logs, emails, contract, etc., a decision is rendered and you will be notified
by mail of the outcome.
Some large corporations employ a lawyer to handle their small claims work. Don’t let this
intimidate you. On occasion the lawyer representing the defendant will try to work out a
settlement before proceedings begin. Depending on what is offered, if anything, you may choose
to settle on the spot, or continue your case in front of the judge.
Another option that might be available to you is mediation. Mediation is a process where you and
the defendant sit down along with a court appointed mediator and work out a settlement.
The upside of mediation is the outcome will be determined right there without having to sit in
court all day and then wait a week or two for a decision. The downside of mediation, as the
name implies, is you might not get everything you wanted.
How To Prepare Your Claim
No matter how you choose to pursue your claim you first have to get the ball rolling. The
following should give you a good idea of how to proceed and how to prepare.
Go to your local courthouse and find the civil clerk’s office. Tell her you want to file a small claims
action and she will give you a simple one page form to fill out. Basically all you need to do is fill in
your name, address, etc.; the amount of the damages you are seeking; the defendants name and
address, and a brief explanation of the basis for your claim.
As far as writing down the basis of your claim, often just a few sentences will do. One
explanation for a claim I filed consisted of: “Delivered 40 boxes from Boston to New York City on
3/10/09 and have not been paid.”
Once you pay a small filing fee (which is added to the judgment if your case is successful) you will
be notified by mail when to appear.
In the mean time, if you haven’t done so already, create a record of your efforts to obtain a
refund. The list should include the date of any conversations you had either by phone or in
person, a recap of what was said, and the outcome.
Also, save dated copies of any written correspondence you sent out (use registered mail) and the
replies. If you were corresponding by email print them out.
Hopefully you’ll be successful and get everything you’re entitled to. However, while getting a gap
insurance refund solves one problem it creates another – you may still need gap coverage.
If this is the case, check out the Gap Buying Guide where you will find numerous sources for
inexpensive gap auto insurance.
to get a gap insurance refund when they find out the same coverage could have been purchased
for far less money from any number of brand name insurance providers.
Others who purchased gap and are now seeking a refund may not have needed it in the first
place. In New York State for instance, the cost of gap coverage is automatically included in the
monthly lease payment, but the salesperson might have sold you a policy anyway.
Another reason you might not have needed gap coverage, but now want a refund, is if a gap
never existed. In other words, if the loan amount and the value of the car you just purchased are
approximately equal, there is no gap in the financing to fill. A situation like this often exists with
the purchase of a used car two or more model years old.
Whatever your reason(s) for seeking a refund, some attempts will be met with greater success
than others. One instance where it might prove difficult to obtain a refund is when everything
was done above board and you try to cancel after the specified cancellation period.
However, if you just signed the contract, it should include a clause allowing you 3 days to change
your mind. This clause is known as the right of rescission and is included in most consumer
contracts.
The Small Claims Solution
In cases where you feel you have been mislead or victimized by unethical behavior, the best
place to seek a remedy is small claims court. Small claims court is informal, inexpensive, and
designed especially for situations like this. Small claims court is usually administered within the
county or district court house where routine matters such as traffic offences are adjudicated.
As mentioned, small claims is informal and low key. You, the plaintiff, tell your story to the judge
and then the defendant gets his turn. Once the judge hears both sides of the story and examines
the evidence; phone logs, emails, contract, etc., a decision is rendered and you will be notified
by mail of the outcome.
Some large corporations employ a lawyer to handle their small claims work. Don’t let this
intimidate you. On occasion the lawyer representing the defendant will try to work out a
settlement before proceedings begin. Depending on what is offered, if anything, you may choose
to settle on the spot, or continue your case in front of the judge.
Another option that might be available to you is mediation. Mediation is a process where you and
the defendant sit down along with a court appointed mediator and work out a settlement.
The upside of mediation is the outcome will be determined right there without having to sit in
court all day and then wait a week or two for a decision. The downside of mediation, as the
name implies, is you might not get everything you wanted.
How To Prepare Your Claim
No matter how you choose to pursue your claim you first have to get the ball rolling. The
following should give you a good idea of how to proceed and how to prepare.
Go to your local courthouse and find the civil clerk’s office. Tell her you want to file a small claims
action and she will give you a simple one page form to fill out. Basically all you need to do is fill in
your name, address, etc.; the amount of the damages you are seeking; the defendants name and
address, and a brief explanation of the basis for your claim.
As far as writing down the basis of your claim, often just a few sentences will do. One
explanation for a claim I filed consisted of: “Delivered 40 boxes from Boston to New York City on
3/10/09 and have not been paid.”
Once you pay a small filing fee (which is added to the judgment if your case is successful) you will
be notified by mail when to appear.
In the mean time, if you haven’t done so already, create a record of your efforts to obtain a
refund. The list should include the date of any conversations you had either by phone or in
person, a recap of what was said, and the outcome.
Also, save dated copies of any written correspondence you sent out (use registered mail) and the
replies. If you were corresponding by email print them out.
Hopefully you’ll be successful and get everything you’re entitled to. However, while getting a gap
insurance refund solves one problem it creates another – you may still need gap coverage.
If this is the case, check out the Gap Buying Guide where you will find numerous sources for
inexpensive gap auto insurance.
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