Business ProfileforMechanical Breakdown Protection

This business was extremely disappointing. They do not function like other insurance companies. The GAP coverage only paid out 3% of the car's value, they were $900 short in covering the GAP and they kept the remainder of the premium stating I had purchased a product, and a refund would not be issued. To put this in perspective, after doing some research, Progressive pays 25% of car's value for their GAP coverage and you pay the premium as you go so they do not pocket money that doesn't belong to them. You pay for coverage, and they actually follow through with what their coverage says. I assumed all companies run the same, but now I know.

After review, it appears the consumer has filed this review for the incorrect company. Additionally, the consumer’s actual dispute would more correctly be addressed to the consumer’s primary insurance carrier, Progressive, due to Progressive deducting a condition adjustment from the consumer’s insurance settlement amount. Mechanical Breakdown Protection, Inc. is not a party to the GAP Waiver Addendum (“GAP Waiver”) the customer purchased from Pinegar Republic Chevrolet on January 21, 2023. The GAP Waiver is an addendum to the consumer’s finance agreement where, in the event of a constructive total loss, the financial institution agrees to waive the GAP Amount, a defined term, subject to the terms and conditions of the GAP Waiver. Vehicle Protection, Inc. (“VPI”), a subsidiary of MBPI, is the administrator of the GAP Waiver responsible for adjudicating claims in accordance with the terms and conditions of the GAP Waiver. The GAP Waiver is NOT insurance and VPI is NOT an insurance company Under the terms and conditions of the GAP Waiver, the GAP Amount is defined as the difference between the net payoff on the date of loss and the amount of the consumer’s primary carrier’s settlement. However, the GAP Waiver expressly excludes any amounts deducted from the primary carrier’s settlement due to wear and use or prior damage, otherwise referred to as a “condition adjustment” on the primary carrier’s settlement statement. In this case, the settlement statement provided by the consumer’s primary carrier, Progressive, includes a condition adjustment in the amount of $848.69. After accounting for the $848.69 condition adjustment that was deducted by Progressive, the result was a GAP Amount of $365.28. These calculations were explained to the consumer by representatives of VPI’s GAP Waiver department, including the exclusion of the condition adjustment that was deducted from the consumer’s insurance settlement amount by Progressive. The consumer was advised to contact Progressive and dispute the condition adjustment if they believed it to be in error. In the event Progressive removed the $848.69 condition adjustment, VPI would reopen the consumer’s claim and adjust the GAP Amount accordingly. Regarding the consumer’s statement that a refund would not be issued, under the terms and conditions of the GAP Waiver, in the event of a constructive total loss and a benefit is waived, as it was in this case, the GAP Waiver is deemed to be fully earned and no refund will be due. Neither MBPI nor VPI can comment on hypothetical coverage that is allegedly offered by Progressive under a GAP Insurance program. VPI is merely the administrator of the GAP Waiver the customer purchased from Pinegar Republic Chevrolet.