A Shocking Experience

An Ontario family's harrowing experience has turned into a cautionary tale about the limitations of car insurance as their vehicle, a Volvo XC90, was engulfed in flames, leaving them with a financial burden they never anticipated.

The Incident

Peter Wolliston and Shauneka Dean of Etobicoke had purchased the Volvo XC90 in June 2020, and they were generally satisfied with the car until disaster struck in May 2024. What began as smoke from the vehicle quickly escalated into a full-blown fire. “When the fire happened, we were glad we had paid extra for GAP insurance—yes, 100 per cent,” Wolliston recounted. “The SUV burst into flames and then burned down to a crisp.”

Insurance Woes

Despite their hopes, the couple claimed that the insurance payout fell short. While the insurance company issued a cheque for the car, an outstanding auto loan of $8,000 remained unresolved. They had invested significantly in Guaranteed Asset Protection (GAP) insurance—shelling out $2,808—believing it would serve as a financial safety net.

Misunderstanding Coverage

“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,” lamented Dean. The couple received only $1,404 from their GAP insurance policy, leaving them to grapple with the remaining debt.

Seeking Resolution

“This is a significant amount to be out of pocket for when you purchased something thinking you were protecting yourself,” Wolliston emphasized. Dean echoed this sentiment, saying, “I want the $8,000. I want them to cover the GAP.”

Insurance Company's Response

In light of the couple’s distress, a representative from Northbridge Insurance, their GAP insurance provider, extended their condolences. “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 spokesperson advised consumers to be vigilant when selecting insurance, as not all GAP policies offer the same level of coverage.

Resolution Achieved

Following the review, Northbridge added an additional $5,800 to the couple’s claim, boosting their total to $7,204—much closer to the amount needed to settle the financing on their lost vehicle. “This is much better than having to pay $8,000, and I appreciate CTV News helping me solve this problem,” Dean said appreciatively.

A Cautionary Tale

This incident serves as a stark reminder for car owners: taking the time to understand the intricacies of your insurance policy might just save you from a financial disaster. With the number of vehicle fires on the rise—up 20% in the last three years—consumers are urged to examine their coverage closely and ask the right questions before facing a similar fate.

Final Thoughts

Don't let your hard-earned money go up in flames! Always double-check your insurance policy and ensure you know exactly what you're paying for!