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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: fandiguy (Oct 03, 2008 5:30 am) When did I mention anything about high yield cd, etc., etc. etc.? My opinion is based on where I've read that most cars reach their equilibrium about month 42-44 in a 60 month loan. Since you are an F&I guy, you should be able to confirm or deny this, instead of stating that "there is no way to determine....." Also GAP insurance kicks in when a car is totaled. I've been fortunate to not have had such a devestating event nor have I had a moving violation in over 25 years. 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.<i/> So now you sell GAP insurance for $200???? $200 would be a great price for GAP insurance. I've never heard of a dealer going that low. Most of the time it's "it will only be an additional $xx a month". I agree that everyone should consider it if you do a no money down loan or a buy a car that depreciates quickly. My point is simple, from my experience, GAP insurance bought through a dealership is over-priced. If you feel the need to have it (personal choice), check with your own insurance company first. Like the previous poster mentioned most insurance companies charge around $6/month although I have seen cheaper. Your GAP insurance at $599 on a 60 month loan would be a minimum of $10/month not including interest. Basically, I am a cheap person (it's my engineering background). I would rather not pay extra for something that I may or may not need. if I do make the decision to buy something like this, I will definitely pay as little as possible. |
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You're right that I should not have made such a general statement. But idiotic is a bit much....but I will stop there. I've read enough and have had enough personal experience that I am pretty comfortable stating that buying GAP insurance through the dealership will be your most expensive option unless you can negotiate the price (you haven't indicated you can do this...). Why would a dealership care whether or not you can pay for your car loan after the car has been totaled, unless they could benefit from it financially? I don't mind people making a profit but don't get offended if people think the product you supply is a bit over priced and suggest checking other options. That's all I am arguing! fandiguy: we differ on this issue and that is fine but please keep the insults to yourself. I've been a member of Edmunds since the mid 90s and have been a very active participant in these forums. I try to offer my opinion on various topics without insulting people or name calling. I like a good argument or debate but always try to be fair and remember to treat people respectfully. I also try not to use terms like "idiotic". |
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Replying to: dtownfb (Oct 02, 2008 5:15 pm) They have a Platinum Package that adds Safe Driving Bonus where you get 5% of your premium back if you do not have an accident for 6 months. Comparing that it would have cost me $15 more every six months EVEN if I got the 5% back. The Accident Forgivenss package noted for multiple accidents where the Gold Package was probably non-multiple. I'm comfortable with this and in my situation I decided this worked out best. Bill
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Replying to: wlbrown9 (Oct 06, 2008 1:49 pm) |
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some people tried answering this before but some said yes other no. m y car was totalled like two months ago and my insurance said it was worth like $3500 more than what i owed but from those $3500, i had to pay $500 deductible. i just read the posts but it does not seem like a definite answer was found. so could i get the dedcutible of $500 from them even though i did not have to use gap to cover the loss as i owed less money. thanks
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Replying to: player99 (Oct 15, 2008 9:48 pm) |
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Replying to: player99 (Oct 15, 2008 9:48 pm) $10000 on your auto loan and your auto insurance company settled the ACV at $10000, but cut a check for just $9500 (ACV less $500 deductible), the Gap coverage should respond to that loss and pick up your $500 out of pocket loss. However if your insurance company said the ACV was $11,000 and cut a check for $10,500., you'd be out the $500 deductible. The gap waiver/insurance doesn't respond when you don't have to come out of pocket for anything, Hope this helps. FYI...read your waiver/insurance form, you may be entitled to a refund of the unearned portion of what you paid for the gap, even when a loss is paid...that might get back of little of that deductible loss your suffered.
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Replying to: jforjames (Oct 16, 2008 5:43 am) |
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Replying to: fandiguy (Oct 03, 2008 5:30 am) So the apparent savings with your own insurance company is none. Last do you really want your own insurance company to hold all the eggs in one basket? If there is an accident and it is on the line of being totalled or not being totaled do you think they are looking out for your best interest if the eggs in are in there basket? Something to think about! |
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