>For all of you who are wondering about our vehicle situation:We had one loan for both of our vehicles (van and car). In addition to full coverage on both vehicles, we also carried gap insurance on the van, since we owed the bank more than what it was worth.
Nov 30th: The van was involved in an accident
Dec 1st: I called the bank and State Farm to tell them about the accident.
Dec 4th: State Farm informs me at 4pm that the van is a total loss.
Dec 5th: Kim and I drive to State Farm to sign everything so State Farm can send a check to our bank for the value of the van. I mail all the appropriate paperwork to the bank, minus the check, which State Farm says they have to send directly to the lienholder.
Dec 8th: I call the bank to see if they got my paperwork. They did. Just waiting on the check now. At this point, the bank informs me that it could take up to two months for the gap insurance to clear and pay off the remainder of the van.
Dec 15th: I decide to call the bank and ask if they got the check from State Farm, and how is the gap insurance processing going. They said they haven’t gotten the check from State Farm yet. They can’t file the gap insurance claim until they get the check. I called State Farm, and they said, “according to our file, we are waiting on a guarantee of title from your lienholder.” So my bank is waiting for a check, that the insurance company won’t send because they are waiting for a document from the bank. Does anybody see a problem here? While I was still on the phone with State Farm, they called the bank to try and get this resolved. I had to give my account number to three different people at the bank, and the last person we spoke with wasn’t even the right person, he just said he would make sure it got done. The State Farm guy told me that he will “stay on top of this” and call me when they get the fax.
We have owned two vehicles for the past five years, but it is just a convenience at this point, and we feel that it is a good time to reduce down to one vehicle. Given the fact that there are five of us, we think that a minivan is the right one for us. But we have this car, and we need to get rid of it first. We can’t sell it until we know how much we still owe on it (which we won’t know until after the gap insurance pays off). But that means that we are stuck with five people in a car that seats four comfortably.
Here is the timeline of events then:
1. State Farm finally mails a check to the bank.
2. The bank files a gap claim
3. The gap insurance company pays on the van.
4. We buy a (new to us) van, trading in the car.
#1 hopefully will happen today. #2 should happen in a few days. Unfortunately #3 will take between 1 and 2 months, or so the bank says (and given the bank’s track record, I’m guessing closer to 2mos). So we are thankful that we have transportation, and we will be thankful when, in February, we are able to get a bigger vehicle.