Buying a new car can be a daunting experience.
But a little preparation can save you a lot of money not only on the car, but the insurance as well.
When Dona Poff, of Price Hill, bought her new 2003 vehicle she was very careful to make sure she was fully insured ~ including buying Gap insurance, which helps pay off her car loan should her vehicle be totalled in an accident.
DONA POFF: "I purchased the Gap insurance on it because I knew as soon as I drive it off the lot it was going to depreciate in value. I totalled that vehicle on July 23 of this year and started all the paperwork on it the week after I totalled it and still haven't received any results."
The dealership had sold her a policy from Beacon Industries in Florida, but when she contacted them--
POFF: "They said I'm not in their system that I wasn't put in their system as having Gap insurance. I was only put in as having edge protection which is fire and theft."
Poff was sold fire and theft insurance for $199 even though she already has such coverage with her auto insurance company.
Now, she says, "I'm still paying National City for the car that I don't have."
The cost of this total loss protection plan, $495. Poff said she didn't realize she could probably get Gap insurance from her own insurance company for just about $12 a year.
POFF: "They're supposed to pay the bank all the way from the date of loss so they should pay National City their full $1500 and then National City is supposed to send me a reimbursement check for whatever is overpaid."
Poff sent Beacon Industries a copy of the cancelled check, and the policy proving she has Gap insurance with the company.
But although she's received numerous promises, she has yet to receive any money.
I called the company but have yet to receive a call back.
Beacon Industries has an F rating with the Better Business Bureau.
Another reason why it's best to buy Gap insurance from your own auto insurance company.