Edmunds.com | Inside Line | Auto Observer Your Account | Help | Directory
You are here:
![[F]](http://a332.g.akamai.net/f/332/936/12h/www.edmunds.com/media/townhall/webxicons/site.gif){kind=small}
Forums
Smart Shopper Gap Insurance
440 messages, Last post on Sep 24, 2009 at 1:20 PM
You are in the Smart Shopper Forum. Your Hosts are kirstie_h & tidester
|
Replying to: joel0622 (Nov 26, 2007 1:40 pm)
|
|
|
Replying to: jforjames (Nov 26, 2007 2:12 pm) |
|
|
Just a word to the wise. Before you assume that a "cheaper" gap policy is better from your insurance company or bank or credit union, bear this in mind: Read the terms of the policy. I have seen that most policies offered by credit unions and insurance companies only cover a gap up to 100%-110% of NADA retail value of your car, which may not be near enough to cover if you have negative equity, so you may still be on the hook for thousands. Also, if you have a deductible on your auto insurance you will probably still have to pay it. Gap policies offered thru most dealers can cost a little more, but will often cover up to 150% of NADA retail and most will cover your deductible as well. Price is not everything. Look at the coverage closely, there is a big difference.
|
|
|
Replying to: eswan87 (Nov 29, 2007 12:05 pm) I'm trading my car in for a brand new car. I'm upside down so they tack on $8000 to the new finance contract, in addition to the new car that I'm financing for $25,000. I purchase Gap. I drive off the lot and total it. Is the Gap going to pay $25,000 PLUS the $8000????
|
|
|
Replying to: jagar100 (Nov 29, 2007 1:16 pm) In your scenario it sounds like the GAP would be around $12K and yes a Ford GAP Policy would pay it plus your deductible.
|
|
Does anyone know if VW Credit automatically includes gap insurance on its leases at no additional charge?
|
|
|
Replying to: vectra721 (Dec 09, 2007 6:24 pm) |
|
you are correct, rather than "assume," it may be worth a phone call, or, heaven forbid, read your contract (.. ...) just to be absolutely sure that you ARE covered...I would hate for your vehicle to be stolen or totalled and find out the hard way you do NOT have GAP... 
|
|
|
|
|
I've read the entire thread and still have questions. Hoping some experienced soul here can guide me. First, someone upthread said something to the effect of "...since most of us would have difficulty coming up with $3-10K in one day..." Is that really how it would work in the case of insurance payout on a totaled car that's less than what's owed on the note? Meaning, I'm sure the insurance company pays out the settlement amount directly to the lienholder, but then does the lienholder demand immediate payment on the difference? I guess they do, but surely people just pay that out when they can't do otherwise, taking the hit to their credit, correct? Asking the question because on my last new car purchase, which was zero down, I paid $6K below sticker but rolled in $5500 negative equity from my previous note, basically financing the sticker price. Obviously knowing I was immediately upside down on this quickly depreciating American car, I searched in vain for GAP coverage. I was unable to find any company to purchase GAP coverage through at the time. I financed the car through my credit union but they didn't offer it, my insurance company (State Farm) didn't offer it either, and I couldn't find any independent companies at the time willing to provide me with coverage. So I went without it, hoping for the best. Here I am almost 3 years later, still upside down some on the note, and was involved in a 3-car collision last week. It's looking like the car is going to be totaled out. What this will do is put me in the unfortunate position of again having to finance something with zero down, and I definitely don't want to chance finding myself in the same position again! If anyone has ANY recommendations for reputable companies that will provide GAP insurance, any info would definitely be appreciated! (As an aside, does anyone think I can/should get the negative equity on the wrecked car [probably +/- $2k] rolled into the new note, or should I just keep that separate and make payments on it until it's paid?)
|
|
|
Replying to: art_vandelay (Jan 10, 2008 2:44 pm) My insurance agent added it for me when I was with Safeco. The cost was a lot less than GAP insurance through the dealer finance company. |
|
You are here:
Forums
Smart Shopper Gap Insurance
New? Join Now!
Forum Tools
Search Forums
Browse by Vehicle
Browse by Board
Browse by Topic
Today's Chats
