Auto Insurance Claims: Gap Insurance, state insurance commissioners, auto insurance company

Question
My car was stolen and then found but, was considered a total loss.  My insurance company paid the majority of my balance, but the remaining balance which was about 1200 dollars wasn't completely paid by my gap insurance.  I've been trying to get this resolved but I keep getting the run around from the dealership and gap.  I purchased my gap through the dealership and they say they sent payments but the dealer says no they haven't. Now the dealer keeps sending me payments like if I'm still paying my loan. They send an invoice for my monthly payment on a car I don't even own anymore.  I want to buy a house, now this will keep me from doing that. Can they keep charging me my car payment after it was considered a total loss? And how can I get my gap insurance to pay the remaining balance?

Answer
Hi Amy,

This is a very serious situation. The car note is still due until they receive full payment. The finance company and the GAP insurance company have no relation to each other. You need to write a letter to the gap insurance company demanding a full accounting of who they paid, how much and when. If they do not cooperate, you will need to file a complaint with your state insurance commissioners office. You should also demand from the finance company to know what they show of payments they received from your auto insurance company and the GAP company.

I hope this helps
Richard Hixenbaugh