What to do if my husband's car was stolen while he was working and now our insurance will not cover our loss?
Question Details: We have full coverage on a financed car and it was stolen from my husband while he was delivering for a pizza chain. The insurance company says it's not covered because he was at work. We had no idea it wouldn't be covered. The employer asked if he had insurance and he told them that he did, that was it. No one said that he needed extra insurance. We also purchased GAP insurance but I'm told they only cover what insurance won't and if insurance doesn't cover anything GAP won't either. Do we have any recourse?
You most likely have no recourse. Insurance covers you for the purpose and under the conditions/facts you disclosed when you bought it. Insurers charge more, and are allowed to charge more, when you use a car commercially or for business than when it is personal use only, because with the additional or heavier use that comes from business use, the risks are higher. Therefore, if you only bought insurance for the personal use of your car, you 1) did not disclose business use and 2) did not pay the appropriate amount for business use; that legally lets the insurer disclaim or deny coverage, because you bought the wrong coverage, didn't pay for what you needed, and in essence actually bought insurance under false pretenses. It doesn't matter if you did not know it would not be covered: the insurer simply doesn't have to cover commercial uses of a car if you only have insurance for personal use.