Gap Insurance........
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Postmaster
Joined: Oct 2004
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From: Southern Louisiana
Gap Insurance........
Just wondering if anyone had any experience buying gap insurance other than at the time they bought their vehicle. I am looking for a reputable company to buy gap insurance through for my 05 Screw. I know when we bought my wifes Nissan I could have purchased it and added the cost to the loan or I could have bought it seperately , which is what I did 2 months later. I just cant remember the name of the company.
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Postmaster
Joined: Oct 2004
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From: Southern Louisiana
Well, I dont know who the dealership uses but whoever it is is a shark so I opted out of it than because I know there are other companies that offer it, just trying to find a reputable one.
Sit. Stay.
Joined: Oct 2001
Posts: 18,308
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From: Washington State
I called my insurance company (GIECO) and asked if what the GAP insurance sales brochure was true.
After talking with the manager there, he told me to do it if it is a brand new car. It was. I bought it for $400. There was quite a GAP in my coverage since my insurance company would have only paid for the wholesale value in the event I got in a total-loss wreck right off the lot.
I think the actual replacement-cost coverage from the insurance company wasn't even available. Some insurance companies may have it.
After talking with the manager there, he told me to do it if it is a brand new car. It was. I bought it for $400. There was quite a GAP in my coverage since my insurance company would have only paid for the wholesale value in the event I got in a total-loss wreck right off the lot.
I think the actual replacement-cost coverage from the insurance company wasn't even available. Some insurance companies may have it.
Senior User
Joined: May 2006
Posts: 446
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From: MD
Does that GAP cover your deductible as well? If it does then it seems to be worth while to me. If it doesn't, then I would be looking at other insurance companies.
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Laughing Gas
Joined: Jul 2004
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If you can get it CHEAP (read: no more than $5 a month) through your insurance company, go ahead. NEVER, EVER, buy gap insurance from a dealership...it is a rip-off. I'd never buy it on a used vehicle, it just means you're trying to stretch out the payments too long or you're paying too much for the vehicle. Really the same goes for a new vehicle as well, particularly if you're using terms greater than 48 months to finance a vehicle.
If your insurance company won't pay more than wholesale if it is totaled, then its time to find a new insurance company. Last time an insurance company totaled a vehicle of mine, I actually got paid VG retail on it. They're just using that as a scare tactic to sell you gap insurance.
If your insurance company won't pay more than wholesale if it is totaled, then its time to find a new insurance company. Last time an insurance company totaled a vehicle of mine, I actually got paid VG retail on it. They're just using that as a scare tactic to sell you gap insurance.
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Joined: Apr 2002
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From: Tampa Bay, FL USA
It depends on where you live. Here in NY the cost of gap coverage is strictly regulated; when I was still selling vehicles in 2004, the most ANYONE could charge for it (dealers included) was a one-time charge of $90. In my book, that's a bargain, yet we STILL had people that would carry over a substantial balance from their trade-in, put no money down on the new vehicle, and pass on the gap coverage. "Let's see, I'm about $7,000 upside-down in this new Explorer the moment I drive it off the lot, that amount will only INCREASE for about the first 24 months of my loan, and if I total it during that time I'm on the hook for thousands of dollars. Naaaah, I don't need no gap coverage..." Morons...
Postmaster
Joined: Dec 2003
Posts: 3,130
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From: Massachusetts
My gal purchased it for her Escape that she baught a few years past. She totalled her 2003 hyundai with 10K miles on it. The book was $9K and she owed $12.5K. She was on the hook for the difference. I had to pay off the $3.5K. First and last time I will ever do that. When she baught the escape I told her to get gap insurance. It equated to about $9 a month. She baught a escape that was 1.5 years old and had 20K miles. With no trade and no down payment she was in the same vulnerabe situation if that one got wrecked.
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Postmaster
Joined: Oct 2004
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From: Southern Louisiana
I figured out the trucks value and loan amount (- interest, DOPE) and found that I paid $650.00 too much for the truck. If gap insurance runs me $300-$400 I dont feel it would be worth it. I called my insurance company today and they broke it down for me.
Elder User
Joined: Nov 2005
Posts: 788
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From: Cottage Grove, Minnesota
I got gap insrance when I pulled the loan for my 97 F150 in 05. The loan officer suggested i should in case the truck's a total loss. I can't remember what the cost of mine was, but I think it's something like $5 a month.
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