I filed suit today against Auto Gap Insurance Company for failing to pay benefits under a gap insurance policy. My client purchased gap insurance when she purchased her car. (Gap insurance is intended to pay a borrower for the “gap” between what is owed on a vehicle and the market value of the vehicle in the event the vehicle is totaled.)
My client’s vehicle was totaled in a crash. Her auto insurer paid what was due under her collision coverage which left a substantial “gap” for her to pay. She submitted her this loss to Auto Gap Insurance Company which stated that it had never issued a policy to her. Contrary to Auto Gap’s assertion, my client has an actual original policy issued by Auto Gap Insurance Company. She also has her original “deal file” from the car dealer that sold her her vehicle. The Retail Installment Sales Contract and her Bill of Sale both document that she paid for the gap insurance.
The lawsuit also includes a count against the car dealer which sold the policy to my client. The allegations against the car dealer result from the fact that it appears that the actual gap insurance company is not an authorized insurer in Florida. Florida Statute Section 626.901 makes anyone who aids an unauthorized insurer in selling insurance liable for all losses that would be otherwise covered under the policy issued by the unauthorized insurer. Pursuant to section 626.911, anyone who aids an unauthorized insurer in selling insurance in Florida is liable for attorneys fees and costs if I am successful.
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