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Smart Shopper Gap Insurance
440 messages, Last post on Sep 24, 2009 at 1:20 PM
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Replying to: saints75 (Sep 15, 2008 6:47 pm) Dealer's hate to give refunds. If you look at your loan agreement, whatever price you paid for gap coverage, figure the dealer kept 60-80% of that amount.
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Replying to: jforjames (Sep 19, 2008 4:12 pm) I was told by a dealer once, that the ENTIRE loan balance would be paid for by loan gap, even if you were upside down on a vehicle. Meaning, if there was a balance from the other vehicle that was tacked on to your new loan, he is saying that loan gap would pay ALL of it. Is this true???? I know that insurance loan gap will not pay finance charges, overdue principals outstanding or penalties of leased vehicles, etc. I can't take his word for it, and he could not provide it in writing since I was not buying a car, I was only calling to inquire. Also, when leasing vehicles, isn't lease gap included now?
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Replying to: jagar100 (Oct 02, 2008 5:58 am)
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Replying to: fandiguy (Oct 02, 2008 6:57 am)
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Replying to: wlbrown9 (Oct 02, 2008 7:53 am) |
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Replying to: fandiguy (Oct 02, 2008 6:57 am) After the loan is paid off why can't someone just call their insurance company and tell them to cancel the GAP insurance?  When I bought my car a year ago the finance manager tacked on GAP insurance for an additional $599. I went home and discovered that my car insurance company offered it for $6/mo. I went back the next business day and canceled the dealership's coverage.
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Replying to: tedebear (Oct 02, 2008 1:33 pm) $599 is what the dealer charged, $6 a month is what your insurance charged.....for how many months. Gotta compare apples to apples. Did the insurance company offer to waive the deductible if you ever used it? The coverage varies from company to company (dealership and insurance provider) so its hard to tell which is the better deal sometimes. |
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Replying to: fandiguy (Oct 02, 2008 2:01 pm) You charge $599 for GAP insurance (which is useless the last year and half of a 60 month loan) and add it to the monthly car payment so they are paying it the entire length of the loan. So the actually cost of the GAP insurance is $599 plus the interest rate over the length of the loan. And of course you can't cancel it or people simply forget it's there. At least with your insurance company, you can cancel it at anytime, like the last two years of the loan when equity of the car may be greater than the amount owed (of course this depends on the car, loan amount, interest rate, down payment, etc). Quite honestly, if your insurance company offers GAP insurance, it is a much better bargain than what the dealership offers. GAP insurance is like extended warranties, it's for people who are looking for peace of mind. Nothing something I would ever buy but I can understand why people buy it. |
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Replying to: dtownfb (Oct 02, 2008 5:15 pm) You charge $599 for GAP insurance (which is useless the last year and half of a 60 month loan) and add it to the monthly car payment so they are paying it the entire length of the loan. So the actually cost of the GAP insurance is $599 plus the interest rate over the length of the loan There is no way to determine the value of a car 4 1/2 years out, so thats an assumption on your part. It never ceases to amaze me how many people are obsessed with the tiny interest charges on this amount of money. "I'll put it into a high-yield cd, etc, etc, etc." I'm so glad everyone has a plan to become millionaires by investing the charge of extended warranties and GAP policies, because interest on that amount of money is HUGE!!! And of course you can't cancel it or people simply forget it's there What?!?! I think i know what you were trying to say. You can go to the dealership at anytime and cancel GAP. Did you read the original post i was responding to when the poster said he cancelled the GAP policy he purchased at the dealership? Quite honestly, if your insurance company offers GAP insurance, it is a much better bargain than what the dealership offers. GAP insurance is like extended warranties, it's for people who are looking for peace of mind. Nothing something I would ever buy but I can understand why people buy it. The value would depend on the cost and coverage levels. If i sell you GAP for $200, now the dealerships GAP is a better value then the insurance companies-everythings not so black and white, there's a gray area. You're entitled to your opinion, but if you finance a car with no money down or trade equity, GAP is a no-brainer. Even a biased site like edmunds will usually agree with that. Just like with warranty's, if someone who doesn't have GAP totals a car and the insurance company won't pay off the loan, now they're the "evil insurance company."
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