GAP Insurance

[angie7]

Yes I believe it is.

[DallasCub]

The dealer tried to add to my loan and I told the guy he was insane if he thought I was going to finance GAP Insurance and pay interest on it when I can get it through my car insurance company (Travelers) and drop it as soon as I'm not upside down.
The dealer claimed he had no idea GAP was available from insurance companies.

Originally Posted by SpunkyMonkey

I declined the dealers GAP and got it a lot cheaper through my insurance policy. I think it's a good thing to have.

[USMCSSGT-RET]

GAP is a must. I work for and finance my cars through Navy Federal Credit Union and it's only $249...best investment if you ever have to use it!

[Caspers2SSRS]

Originally Posted by Shurenuff

Please excuse me and correct me if I'm being dense, but I don't understand this strategy at all. I get that John's taking a gamble on high detuctable costs in order to save on premiums. So John bought gap insurance just to save himself the full detuctable costs in the case of an accident that resulted in his vehicle being totaled, but all other accidents involving his insurance he's going to have to pay out of his nose to cover the detuctable costs? So he's hoping for either no accidents (obviously preferred) or a totaled vehicle if there is an accident during his loan period?

I don't get it, sounds like rolling the dice for no good reason. If you want to roll the dice in this situation, why purchase gap to potentially save on the insurance detuctable when it's more likely that any accidents that occur that involve his insurance will not result in his vehicle being totaled? So he'll more than likely be paying a hefty amount due to his high detuctable (not including the $500 he spent on gap)?

Maybe John knows some people and can make sure his car is totaled if anything major ever happens to his car

Lets suppose John as many car owners do, has a very high deductable to keep premiums budgetable, and no GAP. They still pay the high deductables, 100% of the time if the occurrences is attributable to them, total loss or not.. Secondly......its obvious that not all accidents, total loss or otherwise are attributable to drivers like John. These losses would generally be paid out by the other party or their insurance....John wouldn't bare the expense of any deductable amount in those matters. The analogy as presented earlier was meant not as a one shoe size fits all application........... In fact having GAP is no less of an opportunity to some than being forced to carry inordinate insurance limit amounts inorder to satisfy many state requirements, or those tied to loans....... let alone the cost. Having higher deductables isn't always a first choice matter to many drivers......but pure economic necessity. Why not let GAP cover those risks as often as possible........................

It seems reasonable that the $100 spent for GAP per year on a 5 year loan pretty cheap insurance coverage thats actually covering $2500 in value.......... You could also break the $100 down into a monthly cost of $8 and change..........I'd swap $8 a month for $2500 anyday of the week as this example implies. .

[Bay Area SS]

Every vehicle I have owned has been a brand new vehicle other than my 67 RS SS and my 68 Z 28. Every vehicle I have bought the gap insurance, its well worth it. As soon as u drive you new ride off the show room floor it depreciates so much. My buddy bought a brand new M6 BMW and said GAP was a waste of money, i tried talking him into it. On his drive home a big rig ran him off the road and totalled his car. He was stuck making payments on a car that he didnt have anymore. If I remember correct he payed about 110K for the car, he ended up payin about 17K out of pocket to make up the difference!

[acatlover13]

Absolutely worth it. Unless you can put at least 30-50% down, there's always that possibility that it will get totalled, and you'll end up footing the bill. And let's face it....if everyone had to put that much down on most any car...there would be far fewer new cars on the road....including the 5th Gen Camaro.

[daveagogo1]

The rule of thumb is if your note is for more than 65% of the vehicle then yes get the Gap insurance. If your note is for less than 65% of the vehicle purchase price then do not get it. It only pays the difference between what your insurance company will pay and what you owe. In my case my note is only for 60% of the actual purchase price. So it would offer zero benefit to me as even if the vehicle was totalled insurance payoff would be more than the actual note.

[Bonemaro]

I could use some Gap Assurance. If i see a sweet blonde with a nice beehind i wanna be sure i can hit it without any doubt

[Caspers2SSRS]

Originally Posted by daveagogo1

The rule of thumb is if your note is for more than 65% of the vehicle then yes get the Gap insurance. If your note is for less than 65% of the vehicle purchase price then do not get it. It only pays the difference between what your insurance company will pay and what you owe. In my case my note is only for 60% of the actual purchase price. So it would offer zero benefit to me as even if the vehicle was totalled insurance payoff would be more than the actual note.

It's possible that GAP still cover the out of pocket expense of your deductable, and you're always responsible for absorbing your deductable even if the car were deemed a total loss. The insurance company would simply deduct the deductable amount from the calculated settlement payoff amount. The settlement would'nt consider what you do or don't owe, but the market and salvage value of your car at the time of the loss. Two identical cars bought and financed at the same dealer, at the exact minute in time, under the same terms, same cost, with the same amount due to pay them off at the time of identical total loss accidents, could be valued worlds apart. The previous, if any accident and repair history, as well the actual milage of each individual car at the time of the loss, will affect the total loss settlement amount.

[HighMtnSS]

Gap is a "no brained" IMHO!
It's dirt cheap insurance, plus, you can get a prorated amount back if you sell or trade before the end of your loan term.

[daveagogo1]

Originally Posted by Caspers2SSRS

It's possible that GAP still cover the out of pocket expense of your deductable, and you're always responsible for absorbing your deductable even if the car were deemed a total loss. The insurance company would simply deduct the deductable amount from the calculated settlement payoff amount. The settlement would'nt consider what you do or don't owe, but the market and salvage value of your car at the time of the loss. Two identical cars bought and financed at the same dealer, at the exact minute in time, under the same terms, same cost, with the same amount due to pay them off at the time of identical total loss accidents, could be valued worlds apart. The previous, if any accident and repair history, as well the actual milage of each individual car at the time of the loss, will affect the total loss settlement amount.

Correct but, my deductible is only $250. So, GAP would do me no good as i can't get GAP any cheaper than that. The value of my vehicle exceeds my note payoff by quite a bit. If it's totalled i will get what my insurance company values it at -$250. That would pay off my note and i'd get the rest. Will i take a loss from the original purchase price? Sure, you would even if you had GAP and it would be the same loss.

I don't know if it differs from state to state but in Fla. It only covers the gap between what your insurance will pay and the note you have. So If i were to buy the car yesterday for 35k put down 5k owe 30k and insurance were to value the car at $29,750k Gap picks up $500 inc ded and that's it. Nothing more. But, i lose 5k in a matter of 1 day. Want to be fully covered for this. Then buy new car replacement insurance as that sure isn't what GAP is intended for. It's only to keep you from making payments on a car you no longer own.

I know this as i have been through it about 8yrs ago on a brand new car that got totaled after 1 week.

[Caspers2SSRS]

Originally Posted by daveagogo1

Correct but, my deductible is only $250. So, GAP would do me no good as i can't get GAP any cheaper than that. The value of my vehicle exceeds my note payoff by quite a bit. If it's totalled i will get what my insurance company values it at -$250. That would pay off my note and i'd get the rest. Will i take a loss from the original purchase price? Sure, you would even if you had GAP and it would be the same loss.

I don't know if it differs from state to state but in Fla. It only covers the gap between what your insurance will pay and the note you have. So If i were to buy the car yesterday for 35k put down 5k owe 30k and insurance were to value the car at $29,750k Gap picks up $500 inc ded and that's it. Nothing more. But, i lose 5k in a matter of 1 day. Want to be fully covered for this. Then buy new car replacement insurance as that sure isn't what GAP is intended for. It's only to keep you from making payments on a car you no longer own.

I know this as i have been through it about 8yrs ago on a brand new car that got totaled after 1 week.

Spot on Dave and I too have a low deductible for the same reason ( $50 ). I've been informed that a average milage totaled 2ssrs Gen5 has a salvage value currently of approx 24k in our area here.

[HeaterMan]

I bought gap insurance for my 08 GXP through my auto insurance company, they call it loan/lease coverage. when my car burnt up in a fire there was an 11000 dollar difference in value vs payoff. i didnt pay a dime. I now get it on every car i buy. cost me about 6.00 a month

[camaro_RS]

I got gap...it was around ~15 dollars/month for the duration of my loan. I definitely think it was worth it. I didn't want to wait to get my 5th gen so I traded in my old car (pretty much brand new 3rd gen Prius) and was definitely not going to get for it what I owed on it.