Most insurance policies are issued on a take it or leave it basis. They are known as “contracts of adhesion,” meaning they do not allow for negotiation. This basically means that they have a policy available for you to purchase “as-is”, and you have no right to alter any of the policy’s wording. You accept the policy with all its conditions, exclusions, clauses, etc. Many mortgage and leases agreements are also examples of “contract of adhesion.”Because of this, much of the power goes to the insurance company. Read More
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GAP Coverage and Auto Claims
You have become involved in an accident and your car is totaled. Luckily for you, you have GAP Coverage. So how does it work exactly? After the insurance company figures out how much the car is worth and settles the claim, you may still owe the lien-holder a balance. This is because the insurance company is obligated to pay only the actual cash value (ACV) or your vehicle, regardless of how much is left on your loan. Read More »