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Safe-Guard Gap Insurance / Not paying on claim

1 Atlanta, GA, United States Review updated:
Contact information:

I bought GAP insurance from this company and they are refusing to pay out on my claim. They dragged my claim out for over 1 month before they told me how they were going to calculate what they were responsible for and then stated that they owed nothing. It was my understanding that when you buy GAP protection that they pay out the difference on a vehicle loan after my non-gap insurance coverage pays out. They never said it was based on the value of the vehicle itself. And if it were based on that then GAP insurance would immediately be obsolete. I understand that they may not pay out any interest that may have built up when I used the skip a payment option offered by my lender however I feel that since my non-gap insurance did not cover the total balance of the loan then the GAP insurance I purchased should be responsible for the remainder as promised or they should refund the $600 I spent on the insurance.

Mm
Jan 17, 2013
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Comments

  • At
      2nd of May, 2013
    +1 Votes

    This company is terrible, they like to take your money but, don't want to pay for what they are responsible for... I'm going to contact Fox 5 News and share issues many of us are having. Probably would be a great idea to report to The Better Business Bureau as well along with a few other legals to investigate. Do not purchase any type of Gap coverage or anything to do with Safeguard you will be disappointed and your money taken. Most rude people I have ever spoke to.

  • Gu
      10th of May, 2013
    +2 Votes

    Join the Club!!! My Audi was totaled in Dec 2012. Today is May 10 2013 and im still fighting with them to pay the remaining $4, 000. They need to be regulated and follow a certain time frame like my Insurance Company who I thought would be the one to be late but they paid in 3weeks. So I say Screw SAFE-GUARD Gap Ins. Oh ya and the worst part about all of this is that I'm still paying on a Totaled Out Car for the past SIX Months. Plus my new Vehicle which Alaska Credit Union was nice enough to put aside what I owed on the Audi. Maybe enough complaints will get their Attention when they start loosing Customers.

  • Ka
      23rd of Jan, 2015
    +1 Votes

    They are horrible!!! After my insurance payed off most of my totaled car I expected safeguard to pay the remaining $900. They have told us they need different documents every day even after we sent every thing they asked for. They said we should continue to make our payments. It has been 3 months since the accident and our payments are $300 a month. They have put off paying long enough in hopes that we would pay it off with our payments. They are now saying they are not responsible for it anymore because the remaining balance is past due!!

  • Ch
      22nd of Mar, 2015
    0 Votes

    Did anyone get a copy any contract of the Gap Ins. with this company, me in my case was a refinancing and I did not get anything from the company, so I did not know of the problems or stipulations in a contract that had to do with miles being put on the car or to whom is driving it. so yes it is a very bad company. and the company that put me with them knew about the history of not paying off I will be letting a lot of people know about them for sure. let team up and do a class action suit on them.

  • Up
      6th of Aug, 2015
    0 Votes

    I too was duped by this company my car was stolen 2/7/15 and it took them until today to tell me they were only paying $236.56 when there is a balance of $3, 400.00 still owed. Now it's been 6 months of me waiting and waiting for a response, not once did I get a confirmation of any discrepancies in the info submitted never was I contacted, it was me making all the initiative to get this matter rectified. Now I'm stuck with a soon to be Deficiency Balance a BLEMISH on my credit, yet to say possible garnishment or levy due to non pay for a stolen vehicle I no longer have. If any one has suggestion please let me know.

  • Ti
      18th of Apr, 2016
    0 Votes

    I am dealing with the same thing with this company. Has anyone filed a class action lawsuit that we all could join in on? If not, how do we start the process? This company is ridiculous.

  • Ve
      26th of Jan, 2017
    0 Votes

    I have been waiting for two months for them to pay out on my stolen car. I always have been a month ahead on my payment so I didn't push the issue much. But now reading these I was in did. My finance company sent over all the documents they asked for and still they have not paid up. And this is going on for a month now. Do anyone have a class action suit I can join? I have a remainder balance of 1500 with a note of 600 a month on a car I don't have.

  • No
      20th of Jun, 2017
    0 Votes

    @Vernon Barber If any body does I want to join it my car was totaled and the insurance paid very quickly and there was a difference of 6400.00 and they said they owed 34.99. I am not a happy camper.

  • Gi
      14th of Nov, 2018
    0 Votes

    I have the exact same situation with Safe-Guard (Safe-GAP). Purchased the GAP protection from dealer as part of vehicle purchase two years ago. It was a one-page contract with one paragraph simply claiming that Safe-Gap will cover the remainder of the debt above the primary insurance co's settlement and the amount I owe, in the event my vehicle becomes a total loss.

    Well, someone stole my vehicle and totaled it last August. Every single transaction with Safe-Gap has been veiled in secrecy, apathy and ridiculous document submission - followed by "We couldn't read that page of the packet you sent us. Can you send it again"? This only came up after I contacted them to request a status on my claim - Safe-Gap never contacted me proactively...not once.
    After I finally submitted (and re-submitted) the documents they requested, they processed my claim, paid half of the remaining balance on my vehicle and closed my claim without telling me anything about their activities. After I called to complain that they didn't meet their obligation under the contract I signed, they continued with their misdirection and deception, claiming the dealer failed to give me all of the exclusion documents and that my primary insurance company did not classify the pre-existing damage correctly. This run-around tactic is common among all "companies" who simply want to wear down their customers to the point they stop pursuing their end of the agreement. As such, Safe-Guard is little more than a scam that the auto industry endorses as "GAP Insurance".
    I am going to search for legal counsel to litigate this company's fraudulent and deceptive practices.

    In the meantime, I STRONGLY recommend everyone here who has incurred losses due to Safe-Guard's fraudulent business practices file a fraud complaint with your respective State Attorney General's office AND with the Georgia State Attorney General's office. It will help establish the record of how many people this company has defrauded and the extent of the interstate bad faith policies it employs.
    I will re-post as soon as I discuss a class-action option with an attorney.

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