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Smart Shopper Gap Insurance
440 messages, Last post on Sep 24, 2009 at 1:20 PM
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GAP is designed to pay off the difference between what you owe and what the car is worth...if the car is totalled and paid at $8,000, but you owe $11,000, GAP will pay the $3K difference, so you do not make any money on it, but walk away OWING nothing... GAP was originally used for leases, since you owe for the full lease...then it was simply adapted to purchases... Let's face it...GAP exists because cars, esp American cars, depreciate like a rock, as they are overpriced from Day 1 and the depreciation is like reality catching up with the fantasy...further, if this was like 20 years ago, when folks put a down payment of 25%, GAP would not be necessary because the car would depreciate at the same rate as the 3 year loan was being paid down... But nobody puts anything down anymore, nobody gets 3 yaer loans anymore, and many folks roll over negative equity, so the average $25K car probably has a loan on it of $30-35K, much more than the car is worth...GAP will usually cover a reasonable amount of negative equity, and it is simply a risk reducing measure, since most cars that are wrecked are not totalled, and GAP only comes in when a car is totalled...if it is not toalled, then one argues for diminished value, but GAP does not apply... There will be a multiple choice test tomorrow at 10:00...please bring a Number 2 pencil and Photo ID... 50 questions, 60 minutes, no extra credit...no social promotion and no grade curve...  ...
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Replying to: praz (Oct 18, 2007 4:21 am) I know this is an out there question. But by any chance you have United Autos phone number? I would really like to find out if I can just purchase the GAP from them since my auto insurance carrier does not offer it and I really think that is an important thing to have. I would rather be safe then sorry. THanks for the information. I am still trying to get Extended Vehicle Warranty but alot of the companies out there cant be trusted. Any suggestions? I really would appreciate any help I can get. Thanks Nan
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Replying to: praz (Oct 18, 2007 4:04 pm) |
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Replying to: nkmonty1 (Oct 19, 2007 4:04 am) |
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| Thank you guys for the info, it was helpful to understand how GAP works. | |
MOST OF THE TIME YOU CAN PURCHASE GAP AFTER THE FACT AND AT A DISCOUNT PRICE, SOMETIMES EVEN FOR ABOUT 100 DOLLARS, ALSO THE NATIONAL AVERAGE THAT GAP CLAIMS ARE PAID IS 40% BECAUSE PEOPLE DON'T EVEN KNOW WHO THERE GAP CARRIER IS. THERE IS ALSO SOME NEW PROGRAMS THAT BANKS ARE OFFERING CALLED TOTAL DEBT CANCELLATION. LONG WORD FOR FREE GAP INSURANCE, ITS A WAY THAT BANKS ARE COMPETING FOR THE DEALERSHIP BUSINESS
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Replying to: malostate (Nov 15, 2007 9:30 pm) That is something to really pass on. Now I will ask the banks I deal with if they have something like that. I still cant find anyone that has the GAP insurance. I really would like to have that on my car just in case. I rather have that then not have it if something happens. Thanks for the great info. If you dont mind can you tell me what bank has it so I can check if they have it in my area? Have a great weekend and for everyone HAVE A GREAT TURKEY DAY!! Nan
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Replying to: nkmonty1 (Nov 16, 2007 6:41 am) |
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Replying to: nkmonty1 (Nov 16, 2007 6:41 am) A message on this was posted last month but try your car insurance company. Their rates are generally MUCH lower than a company that just sells gap insurance. For instance, when I financed my new car loan several months ago the loan officer included gap insurance for around $600 for the 5-year term. The next day I checked with my car insurance company (Safeco) and they offered basically the same thing for around $6 every 6 months. They call it new vehicle replacement. I canceled the gap insurance through the finance company. |
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Replying to: joel0622 (Sep 07, 2007 7:33 am)
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