Ontario family’s car ‘burned down to a crisp,’ but additional insurance didn’t cover the loss

An Etobicoke family says an insurance policy they bought meant nothing when their car caught fire. Pat Foran reports for Consumer Alert.

An Ontario family’s car “burned down to a crisp,” but they said an insurance policy they paid extra for did not cover all of the costs that they thought it would.

In the event a vehicle is totalled or stolen, Guaranteed Asset Protection (GAP) insurance can pay off the loan if more is owed than what the car is actually worth.

Peter Wolliston and Shauneka Dean of Etobicoke bought a Volvo XC90 in June 2020. They said they liked their car until May 2024, when the vehicle started to smoke and then caught on fire.

“When the fire happened, we were glad we had paid extra for GAP insurance—yes, 100 per cent,” Wolliston told CTV News Toronto. “The SUV burst into flames and then burned down to a crisp.”

According to the couple, their insurance company cut them a cheque for the vehicle, but there was still an outstanding auto loan worth $8,000.

They said they purchased GAP insurance when they bought the car and paid a premium of $2,808.

“I figured the primary insurance wasn’t going to cover the GAP, so GAP insurance would cover the GAP, but we are finding out that wasn’t the case,” said Dean.

The GAP insurance policy paid out $1,404, they said, meaning they would have to cover the rest.

“$8,000 is a lot to be out of pocket for when you purchased something thinking you were protecting yourself,” Wolliston said.

Dean added, “I want the $8,000. I want them to cover the GAP.”

A spokesperson for Northbridge Insurance and Reinsurance Management Associates, Dean and Wolliston’s GAP insurance provider, told CTV News Toronto they sympathize with their customer for the loss of their vehicle.

“We have reviewed the details of this specific claim and determined that an adjustment to the claim amount is required. We will be contacting the customer to resolve the issue,” the statement reads.

“Because not all GAP insurance policies are alike, and different policies may provide different levels of coverage, we encourage buyers to always carefully review policy details before purchasing coverage.”

Northbridge added an additional $5,800 to the couple’s claim, bringing it up to $7,204, which almost completely covers the GAP.

“This is much better than having to pay $8,000 and I appreciate CTV News helping me solve this problem,” said Dean.