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Smart Shopper Gap Insurance
446 messages, Last post on Dec 05, 2009 at 7:59 AM
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Replying to: fantesia28 (Aug 09, 2007 10:03 am) |
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Replying to: louiseb (Jun 13, 2007 9:19 am) I am surprised State Farm doesn't provide GAP insurance. Another poster said Geico doesn't either. To me, that is unheard of. How can an insurance company not provide GAP insurance. I'd call again and make sure you are speaking to someone is policyholder services and not a call center representative. Most insurance companies offer GAP insurance. (I thought all did). I have AAA and they offer gap insurance. For me, having it adds a few dollars a month to my premium, which is already pretty low for someone my age (23). |
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The need for GAP ins is simple math...it is all based on the assumption that your car is totalled for any reason, such as wrecked, burned or stolen, and insurance (yours or the at-fault driver's) has to pay out what the vehicle is worth, and there is the rub... What the vehicle is WORTH may have no relation to the balance on your loan and how much you OWE...the more upside-down you are, the more you need GAP, simply to make up the dollar GAP between the car's worth and its loan payoff... You said something significant when you said that you were upside down on your trade-in...so, from the moment you signed the papers, you were already $2,000 in the hole, and that is without one dollar of depreciation of the camry... Now, look ahead 12, 18, 24 months from today...your loan will hardly be paid down at all (in any loan over 4 years, the first two years are almost all interest) but your car will depreciate a fair amount, so the GAP between your loan payoff and and what ins would pay if your car was totalled would be much larger, may approach anywhere from 3-10 thousand dollars (your Camry will probably depreciate slower than say, a Ford or Chevrolet), and that GAP would have to be paid from your pocket if your car was totalled... So, GAP pays that difference and you walk away owing nothing...considering that most of us would find it difficult to come up with $3-10K in a day or so, GAP makes sense... The choice becomes where is the best place to buy inexpensive GAP ins, and that is better answered by other posters here...I paid between $300-400 for my two vehicles, and I bought it from the dealer, as it was a minimal amount added to my loan...others buy it elsewhere, and that is OK, too... But, unless you put at least 20-30% as a down payment, you probably need GAP, and you will probably regret it if you do not have it and your car is totalled... I recommend it highly, as high as medpay on your auto insurance, but that is my ranting on another topic... 
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I just purchased at 2007 Toyota Rav4. The very next day I backed it into a pole. I know you are thinking, "What an idiot," but I am used to driving a stick shift and used the break as the clutch and the gas as the brake and backed up hard into a big cement pole. My back window shattered and there is a lot of rear damage, but it is still drivable. Being that I just bought this car the day before, I am a bit strapped for cash, but I do need to get it fixed because my window is missing. My question is, does gap only cover total losses, or does it also cover the deductible that I would be paying to get my vehicle repaired. I heard that it does cover that. And then it also covers up to $50 a day in rental car expenses also, right? This is my first new car and the first accident I have had in over 10 years, so I am not really sure how to go about getting everything taken care of. HELP! Alisha
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Replying to: alishaelovern (Aug 20, 2007 5:29 am) You have to report this to your insurance company. You'll have to pay your deductible. Your insurance company will only pay for rental car reimbursment if you paid extra for that coverage. Unless you have some special sort of GAP coverage? GAP insurance is designed to cover the difference between the insurance value of your car and your loan balance, if your car is totaled in an accident. regards, kyfdx visiting host |
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if your car is totalled for any reason, whether damaged, burned or stolen... I do not know if fraud is an acceptable reason..
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Hi Goood afternoon. I just needed to find out about GAP Insurance. Can anyone tell me if this is true or not? On a site that I saw it said that GAP Insurance not only covers what your insurance doesnt cover but gives you up to a couple of thousand dollars for a new car. HMMM that sounds too funny for me. I do need Gap Insurance buy my insurance company does not cover it and I dont know how or where to start. Any suggestions would be so helpful Thanks Nan
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| I never heard of GAP giving you any extra money, but for a basic understanding, go back about 50-75 posts, read what was asked and answered, and then come back with any unanswered questions... | |
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Replying to: nkmonty1 (Aug 29, 2007 9:05 am) |
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Its funny I am having a hard time trying to get Gap Insurance with extended auto warranty at the same time. I didnt want to buy from two different companies. Any suggestions.? Nan |
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