Safe-Guard Gap InsuranceNot paying on claim

M Review updated:

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.


  • At
    Atlbraves May 02, 2013

    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.

    4 Votes
  • Gu
    Gunsmith12jk May 10, 2013

    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.

    4 Votes
  • Ka
    kaylaaaml Jan 23, 2015

    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!!

    3 Votes
  • Ch
    Charles G Pauley Mar 22, 2015

    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.

    1 Votes
  • Up
    upsetwithgap Aug 06, 2015

    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.

    3 Votes
  • Ti
    Tired&Disgusted Apr 18, 2016

    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.

    5 Votes
  • Ve
    Vernon Barber Jan 26, 2017

    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.

    2 Votes
  • No
    not a fan of carmax Jun 20, 2017

    @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.

    1 Votes
  • Gi
    GI Bob Nov 14, 2018

    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.

    3 Votes
  • Ch
    Christen McGloshen Mar 25, 2019

    This company, Safe-guard gap, is awful!! My car was totaled in November and they have yet to do anything, but lie about claim processing. Oh and let's not forget how they claim there are no outgoing phones anywhere in the building. State farm has them on a recording stating they have ALL paperwork needed, but again today I was told they do not. There recorded line even states they have all paperwork needed. We all need to file suit against these liars!! Calling a lawyer now.

    5 Votes
  • Do
    donberrocal Jul 25, 2019

    They are horrible!! Email me if we can do something! [email protected]

    1 Votes
  • Kd
    KDJax Sep 13, 2019

    They just denied my claim in June, because they said that I was past due in 2016! I wasn't past due. I have contacted my insurance commissioner and the state attorney. I hope someone gets a class action lawsuit against them.

    Does anyone have the contract for them?

    2 Votes
  • Na
    nana06 Oct 24, 2019

    Safeguard does not cover any gap. They approved my claim but basically repaid their premium and left me with $2500 balance. They claimed the condition on the market report provided by the insurance reduced my gap benefit. They also did not offer a deductible payment or any payment toward my new vehicle. The worst gap insurance company I have ever dealt with. I believe they just want to pay their premium and refuse to cover any actually gaps despite being eligible covered losses. They should stop saying that they cover your losses up to 50k when really they don't cover ANY gaps. I would NEVER recommend this company to anyone nor should you ever purchase a vehicle from auto nation. I think further action needs to be taken against them and they should audit their business. They have very shady business practices. I never even received any communication from them after I purchased my Gap Insurance. Oh and the customer service tried to blame it on the dealer that they don't explain all the restrictions because total losses hardly ever happen. SMH.. anyone that lives in a major city knows that total losses happen all the time. After reading many reviews with similar complaints, I know that Safeguard has illegal business practices that need to be investigated. In the meantime, cancel your policy and avoid them at all costs.

    0 Votes

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