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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: joel0622 (Aug 29, 2009 7:10 am) Yes, the dealer offers gap waiver insurance, but they want $600 for it and that's too expensive for me. I need to get the total amount financed down and with having to also make a down payment to reduce the financed amount, I have nothing left to also pay the $600 out of pocket so I can keep the total amount I need financed down. It looks like every gap policy in the country that an owner can purchase as an individual somehow comes through Lee & Mason even though you can buy it from a lot of web sites. All mention Lee & Mason as their agent. But Lee & Mason cap the interest rate you can be paying on your loan at 12.9% and unfortunately, I can't find a lender at that rate these days. (Hard for even me to believe, but, it's true). My research is indicating that: 1. Some regular auto insurers offer gap insurance but seem to be for new cars, not used, and you have to have all your auto insurance with them. 2. Dealers can get gap waiver insurance where they and the lender forgive whatever is left to be paid on the loan if there's total loss of the car. 3. Individuals like me and you can buy gap insurance on the internet from companies that will sell you the insurance all by itself, and it can be for used or new cars, but, it all seems to come through Lee & Mason with the restrictions of: no more than 12.9% interest on loan, no more than 84 mo. on loan, 110 to 120 percent of value of car and a few other things. 4. Drivers Select offers a "Total Loss Protection" deal for $299 which allows higher interest rate and used cars, for 60 months but I can NOT understand how it works no matter how many times I read it, and when I try to call, I can hear the number being forwarded and then a guy comes on and says they are "certified" something or other and to leave a number and they will call back. I know their site links to a warranty site called certified. This may be because it is a Saturday, don't know. I don't know if this will work for me or not. I can't afford to be left with thousands of dollars to pay if I lose the car. If you or anyone else can explain how this Driver's Select works, I'd love to hear. My question mostly is, what value are they putting on the totaled car? Where do they get it from? Here is the link: http://www.gap-insurance.com/indexTL.htm IF you click anything else on the page, it takes you to their regular gap insurance, and to return to the Total Loss page you have to click the above link again.
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Replying to: kelliann (Aug 29, 2009 1:32 pm) Yes, the dealer offers gap waiver insurance, but they want $600 for it and that's too expensive for me I can't afford to be left with thousands of dollars to pay if I lose the car So pay the extra $12 a month and buy the GAP. Over $300 I would most definitley want the contract in my loan and by some third party fly by night. As far as the insurance companies go. Do you really want the company that decides weather your car is totaled also being the one that handles your GAP insurance? Think about it. If the repair is less then the GAP guess what, there fixing your car. Where if the GAP is with a third party they will not care and probably total it.
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Replying to: joel0622 (Aug 29, 2009 3:22 pm) My insurance company does not do GAP for used cars, so, I was not considering using them for GAP. And the problem is, I may not get financing for the car if I include the $600 GAP insurance in the financing contract. I think it would be the best way to go if I could also get financing, but, right now I have to reduce the amount I am trying to finance or I'm not going to be able to get any. It's a tough world out there credit-wise these days. I am trying to find a company that offers GAP insurance for a 2008 car with a high interest rate loan. If you or anyone knows of such a company, please let me know. Thanks! |
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Replying to: kelliann (Aug 29, 2009 5:08 pm)
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Replying to: madmanmoo (Aug 31, 2009 6:38 am) 
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Replying to: kirstie_h (Aug 31, 2009 8:12 am) |
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Replying to: madmanmoo (Aug 31, 2009 6:38 am) kelliann: have you ever thought about getting a cheaper car? You seem to be stressing over this purchase. Plus it appears you are at the upper limit of your credit if $600 is going to somehow disqualify you. And to be honest a six year, high interest loan on a used car in this economy is probably not the smartest move. Why not look for a 2006 Camry instead or a cheaper car? I know it the older design but it should be a few thousand cheaper and near bullet proof in reliability since it was the last year of that design. You can find plenty of Camrys with 40k-50k miles for around $13k. Why not look at a new Sonata? Hyundai has been very aggressive this year in sales and you may be able to get a new Sonata for the same or lower than a one year Camry. The Sonata is rated the same as the Camry. |
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Replying to: kelliann (Aug 29, 2009 1:32 pm)  ) ...Dave
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| That should be the total premium, most likely...so, spread over 48 monthly payments is under $10/month...to me it is worth it, to some it isn't...if the car is totalled in the first 2 years, you may be quite glad you have it...as the vehicle loan balance goes down, the policy is worth less and less, but if you are upside down, say, $7-10K in years 1 and 2, the policy will be quite valuable | |
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Replying to: wdhyte (Sep 13, 2009 6:44 am) |
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