For those of you that do not know what this is, it basically covers any remaining money owed on the lein in case insurance did not cover all the lein (ie. your truck depreciated faster than you paid it off) in case of a total loss accident.

FYI: Ford Credit charges extra for this but if you have ever been in the armed forces (reserves, active, or natinal guard) or your parents have, check with USAA Federal Saving Bank for a loan through them. They matched my interest rate and gave me the gap insurance for free. Not to mention their vehicle insurance is really good (no hassle claims and have not had anyone come near to matching cost with same options).

Some other banks also do this for free so check up on it to make sure you are covered. It would suck to lose your vehicle and still owe money on it.

 

As a FYI, we were able to get it through our insurance company also. Much lower than FMCC.

 

Ford Credit's policies vary from region to region; you might say each office is independently managed. Ford Credit in our area does not charge a separate fee for gap coverage, but their rates are higher than any bank in our area. So, although no fee shows on the contract, making some people think they're providing gap coverage at no charge, Ford Credit just buries the cost in the contract.

 

At least the dealer told me the additional cost up front so I could decide. It came to about $11 extra a month for gap insurance. Not much in the grand scheme of things monthly but can't beat free.

 

$11/month for 60 months is $660. That seems high. I just bought an 04 Mustang GT and the gap insurance was a one-time payment of $292.01.

Maybe the amount you financed was way more than mine. I financed $24,200.

 

I paid $200. flat fee on a 28K explorer, a bargain given that 1 yr later Im still probably 2-3K upside down..

 

yeah I financed $47k (taxes and what not added up quick)