Don Downing and Tom Neill recently obtained a settlement in a class action lawsuit involving Missouri consumers who purchased automobile gap warranties from a Texas-based company. Auto gap warranties typically pay the difference between the balanced owed on a vehicle and what it is worth if it’s totaled in a loss, such as accident or theft. The lawsuit alleged the policies were marketed in a misleading manner and policy holders were paid less than the value of their claim. The settlement called for all past and future claims to be paid in full. KTVI-TV consumer reporter Elliot Weiler interviewed Tom to discuss the settlement and what consumers should consider when purchasing auto gap warranties.
To read details of the class action settlement, click here.