Gap Insurance advice
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Lead Driver
Joined: Jul 2004
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From: Foothills, CA
Gap Insurance advice
Posted this in the 2021 forum too...
We bought our 2020 and got in on the last of the 0% financing offers (and they'll come around again). Finance guy pushed the heck out of buying Gap insurance, which covers the difference between your Loan balance and what the truck's value might be if it is totaled or stolen. We didn't take it as we could have paid cash and so could also take the hit of paying the delta (same as if we paid cash). It was just shy of a grand for the ins. and of course the guy is telling us it'll only add $15 a month to the payment, yada, yada...
Wife puts the new truck on our insurance today (we have Costco for the cars) and the gal asks if she wants Gap insurance? Wife says no, but then said: out of curiosity, how much is it? $10 A YEAR!!! It's good for the first 3 years.
Sure I'll roll the dice for that cheap of coverage - we rolled everything into the loan - 0 down, there's a good sized gap already. The insurance has an inflation clause and covers up to 125%, like if you add accessories, they're covered too...
So if you take out a loan for your truck, check with your ins co. on the Gap ins option...
Thought I'd share...
Scott
We bought our 2020 and got in on the last of the 0% financing offers (and they'll come around again). Finance guy pushed the heck out of buying Gap insurance, which covers the difference between your Loan balance and what the truck's value might be if it is totaled or stolen. We didn't take it as we could have paid cash and so could also take the hit of paying the delta (same as if we paid cash). It was just shy of a grand for the ins. and of course the guy is telling us it'll only add $15 a month to the payment, yada, yada...
Wife puts the new truck on our insurance today (we have Costco for the cars) and the gal asks if she wants Gap insurance? Wife says no, but then said: out of curiosity, how much is it? $10 A YEAR!!! It's good for the first 3 years.
Sure I'll roll the dice for that cheap of coverage - we rolled everything into the loan - 0 down, there's a good sized gap already. The insurance has an inflation clause and covers up to 125%, like if you add accessories, they're covered too...
So if you take out a loan for your truck, check with your ins co. on the Gap ins option...
Thought I'd share...
Scott
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Lead Driver
Joined: Jul 2004
Posts: 6,951
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From: Foothills, CA
And if you get a loan elsewhere, THEY will offer you the same thing... Like you said: go to who is going to settle with you if the worst of worst happens: your car insurance company...
Logistics Pro
Joined: Jan 2010
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It's stupid cheap through your car insurance. It was a difference of only a few dollars between that and my Credit Union, but if you finance with a bank or Ford it's going to be a LOT more.
Lead Driver
Joined: Jun 2005
Posts: 8,466
Likes: 726
From: Calgary Canada
I know insurance is different up here in Canada, but what I've always gotten on new vehicles is called "full replacement cost" insurance, so for instance, if I total a 2018 Lariat F150 in 2020, the payout is sufficient to buy a brand new 2020 Lariat F150, even if that price of that vehicle has changed, or has lower discounts or whatever. What you owe on the vehicle, and what it's current depreciated value is, don't enter into it.
Now that coverage gets more expensive each year as the difference between your used truck and a new one widens, so at some point it doesn't make sense, but it's very cheap for the first couple of years.
Now that coverage gets more expensive each year as the difference between your used truck and a new one widens, so at some point it doesn't make sense, but it's very cheap for the first couple of years.
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Lead Driver
Joined: Dec 2016
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From: GA
I know insurance is different up here in Canada, but what I've always gotten on new vehicles is called "full replacement cost" insurance, so for instance, if I total a 2018 Lariat F150 in 2020, the payout is sufficient to buy a brand new 2020 Lariat F150, even if that price of that vehicle has changed, or has lower discounts or whatever. What you owe on the vehicle, and what it's current depreciated value is, don't enter into it.
Now that coverage gets more expensive each year as the difference between your used truck and a new one widens, so at some point it doesn't make sense, but it's very cheap for the first couple of years.
Now that coverage gets more expensive each year as the difference between your used truck and a new one widens, so at some point it doesn't make sense, but it's very cheap for the first couple of years.
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Thread Starter
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Lead Driver
Joined: Jul 2004
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From: Foothills, CA
Scott
Fleet Mechanic
Joined: Dec 2008
Posts: 1,911
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From: Burleson, Tx
I don't understand the last part. We negotiated the deal, which was well south of dealer invoice and even farther south of X-plan. Didn't lay a penny of our Cash out and financed it all at 0%. Our money continues to grow in investments as we slowly pay back Ford's money. There was no other offer other than the 0% (as in take this cash rebate OR take this financing), if there was I would have run the numbers on that. Total no-brainer to use Ford's money and keep ours invested - at least for our deal it was....Scott
As far as GAP, never buy it from the dealer as the OP said. It is a scam. Insurance companies will always offer you a better price on it.
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Joined: May 2005
Posts: 8,227
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From: San Antonio, TX
Rebates vary by region. Usually we get the best rebates here in Texas. When you take zero percent in most instances you give up at least $3k and as much as $7k in rebates. These numbers vary from month to month and region to region. If Ford was offering 0% and no rebates were lost, then you did well.
For example, Ford is offering $5250 on XL/XLT F150s in my area right now. If you take 0%, you give that rebate up. But Ford is offering $1500 with 0% here, so the total you give up is $3750.
For example, Ford is offering $5250 on XL/XLT F150s in my area right now. If you take 0%, you give that rebate up. But Ford is offering $1500 with 0% here, so the total you give up is $3750.
Thread Starter
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Lead Driver
Joined: Jul 2004
Posts: 6,951
Likes: 512
From: Foothills, CA
Rebates vary by region. Usually we get the best rebates here in Texas. When you take zero percent in most instances you give up at least $3k and as much as $7k in rebates. These numbers vary from month to month and region to region. If Ford was offering 0% and no rebates were lost, then you did well.
For example, Ford is offering $5250 on XL/XLT F150s in my area right now. If you take 0%, you give that rebate up. But Ford is offering $1500 with 0% here, so the total you give up is $3750.
For example, Ford is offering $5250 on XL/XLT F150s in my area right now. If you take 0%, you give that rebate up. But Ford is offering $1500 with 0% here, so the total you give up is $3750.
Thanks,
Scott
Fleet Owner
Joined: Jan 2004
Posts: 26,007
Likes: 575
From: Brentwood,CA
I will say GAP has paid for two unfortunate misses for me. I traded my 2012 for my 2015 F150 and rolled 6k worth of negative equity in. I make it 80 miles after leaving the dealership and I get hit by a truck on a two lane bridge. Truck is a total loss, insurance values the truck for 7k less than I paid. That left me with 13k, thankfully the Ford GAP coverage included up to 150% of loan value. Everything was paid out within 3 weeks and I bought another new truck with GAP. The GAP from ford also gave me 1k as a down towards the replacement which was nice and up to 1k for my deductible.