GAP Insurance

[DwarfMaster]

Can anyone explain this to me?

 

[Bob Slydell]

It's insurance to cover the difference between the appraised value of your car and the amount you still owe on the loan for the car. For example, if you owe $10,000 on your car and it's currently worth, say, $8,000, if you were to get in an accident totalling your car, regular insurance would only reimburse you $8,000 and you'd still owe an additional $2,000 to pay off the loan.

 

[urglewurgle]

like on a car? i know you can get it for cars... and, if you get a car on credit but write it off before you finish paying for it, the GAP insurance covers the difference... i.e. will pay off the rest of the balance...

sorry if that's the wrong thing.

 

[DwarfMaster]

It's insurance to cover the difference between the appraised value of your car and the amount you still owe on the loan for the car. For example, if you owe $10,000 on your car and it's currently worth, say, $8,000, if you were to get in an accident totalling your car, regular insurance would only reimburse you $8,000 and you'd still owe an additional $2,000 to pay off the loan.

I had nooo idea
Do they just add GAP onto your auto insurance policy?

One of the girls at work just bought a new car & was asking about GAP ~ I've never heard of it before.

 

[PlaneJoy1]

My auto insurance has a "Gap" option. I think it is $1 or $2 additional per month. So we added it when we bought our first new car. I would rather be safe than sorry. Our credit union also offers it when you finance the loan through them.

 

[ericamanda01]

We had our Gap insurance added at the daealership. I think we paid an additional $500 for it. But the peace of mind it provides is worth a lot more.

 

[ead79]

We bought GAP insurance on our new car. As the previous posters mentioned, it will cover the difference between what your car is worth and what you owe on it. It was rolled into the purchase price of our car when we selected it, so it’s just part of our monthly payment. It is well worth the peace of mind.

 

[ZachnElli]

It is exactly as all of you described. I have 2 friends, both named Robin coincidently, that had to use their GAP insurance apprx 6 months after each bought new mini-vans! Robin #1, her difference was $10,000 (brand spanking new van fully loaded and got hit by a bus)!

 

[trip]

Our insurance company (USAA) calls it Total Loss Protection and if you finance through them it is included in the loan. Their defination --Free Total Loss Protection, so if your vehicle is totaled or stolen we will forgive the difference between your loan balance and insurance settlement, less your deductible.

 

[TomD]

As someone who was in the car business for 10 yrs I will let you in on a secret.

For most dealerships Gap costs $159 for 60 mos and $199 for 72 mos

Most dealerships charge the customer between $450-$600.

Do I believe in Gap insurance...YES!! Those that need it the most are people who
a) are rolling money from their existing loan into a new loan
b) are not putting any $ down and financing their taxes

those that don't need it are
a) cash buyers
b) people who have a couple of thousand $'s in equity or are putting that much cash down

Alot cheaper usually through your own insurance company.

 

[Pooh Girl 71]

GAP insurance is a great benefit and I recommend it to anyone. I've also found that mose car dealers don't offer it to you, you have to ask (at least that has been my experience).

 

[binny]

It is exactly as all of you described. I have 2 friends, both named Robin coincidently, that had to use their GAP insurance apprx 6 months after each bought new mini-vans! Robin #1, her difference was $10,000 (brand spanking new van fully loaded and got hit by a bus)!

Well since I'M one of those Robins LOL.



I actually didnt have to use my GAP my insurance, Our van was worth more than we paid for it. The really nice part was since we didnt use it, they gave us the cost of the GAP back. I was surprised but it was really nice!


I will always buy GAP now. You just never know what can happen and for the small price you pay, it is worth it!


If we had had a brand new van, we would still be paying the balance.

 

[Chris2597]

We bank, work, and are insured by USAA.....Another one of the MANY perks of doing business with USAA is the GAP insurance that they offer on car loans....It didnt cost us anything....just part of the loan. They are right in line on interest rates, sometimes even lower so it is a real deal.....

 

[ZachnElli]

Well since I'M one of those Robins LOL.



I actually didnt have to use my GAP my insurance, Our van was worth more than we paid for it. The really nice part was since we didnt use it, they gave us the cost of the GAP back. I was surprised but it was really nice!

Oh, I didn't know you didn't have to use it after all! I'm glad they gave it back!