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Auto Insurance Claims/Excess Mileage on Totaled Car
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Question
Recently my insurance company (GEICO) determined that my car was a total loss. The residual value on my lease was $15,000. I had racked up excess mileage on my lease. I had "gap" coverage. According to GEICO, the leasing company (GMAC)agreed to a settlement of $12,000. GEICO paid $12,000 to GMAC and received the title in return. According to GEICO, GMAC accepted the settlement. GEICO assured me on several occasions that I could "wash my hands" of any obligations that I had previously had to GMAC. While payment from GEICO was pending, GMAC continued to dun me, even after I explained that everything was being handled by GEICO. GEICO advised me to ignore GMAC's calls. On two occasions I had conference calls w/ GEICO and GMAC but GMAC continued to dun me, saying that the car was not totaled, but repairable. After finally acknowledging the total loss, GMAC applied the gap coverage to cover the outstanding lease payments BUT has billed me for excess mileage. Is it common under the aforementioned circumstances for a leasing company to be entitled to a fee for excess mileage?
Hello,
You ask if this is common? Every situation is unique.
I am not a lawyer and cannot give legal advice, however you did ask me my opinion as a court qualified expert on insurance claims.
It seems that you feel these fees are not fair and that you are just asking to understand.
OK. The gap covered the difference between the value of the vehicle and what you owed. That is why you were told you could just "Walk away."
The excessive mileage clause on the lease is a different animal. You signed a contract stating you would not put on any more than x amount of miles in x amount of time. In the event you did, you would be responsible for overage. This contract is a separate entity to the value of the car, even though if it had not had the mileage it did, it may have not been totalled.
Mileage as far as the totaling of the vehicle is considered giving the vehicle less worth. You did however enjoy those excessive miles and you did sign a contract stating you would take responsibility for the miles.
Bottom line--it appears as though you will have to pay this fee to GMAC and if you want to go further, I would sugggest speaking with a local attorney, but I think he will tell you the same thing.
Rob
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Answers by Expert:
Rob Painter, Ase, CFEI, CAFATE
Expertise
Please remember. I am not an attorney and cannot legal advice. My answers are based on my experience due to litigation I have been involved in as an expert, for both insurance companies and while oposing them opposing them. I deal with only comprehensive claims on autos related to fire and theft. I have even had the opportunity to rewrite policy coverage language as it relates to vehicle theft and forced entry for insurance defense attorneys.
Experience
Experience in the area: Working with insurance companies and attorneys on these issues for over 20 years. It is very common to have a reported stolen car with a so-called factory anti-theft system to have the theft claim denied. I have served successfully as an expert witness in the courts across the US representing the insured and their attorney revealing that the insurance expert did not take all known theories into consideration before rendering their "Forensic" conclusion. Many insurance carriers us independent "Forensic" experts to examine reported stolen vehicles commonly using flawed methodology implicating the innocent insured with the theft. My job is to determine if the insurance expert reached his conclusions based on accepted scientific principals or just net opinion with no basis other than opinion. My case record against such experts is very compelling.My resume can be seen at the catagory "Auto Theft and Prevention." In "Forensics" the scientific method must be employed. In the forensic locksmith field determining how a reported stolen vehicle was last operated, many processes cannot be duplicated and are conveniently not addressed. If they were, juries would have the opportunity to make a fair and impartial opinion at least about what the expert could or could not prove. There is a purported process determining the last key used. The chances of determining such is very rare uless the key is found in the ignition lock. Experts commonly destroy evidence as well and are rarely questioned on this event. I reveal the weakness in their testimony on such instances.
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