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Gap Insurance

446 messages,  Last post on Dec 05, 2009 at 7:59 AM

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#424 of 446 Re: Looking for GAP for yr old used car, int rate over 12% [madmanmoo] by Mr_Shiftright HOST Sep 14, 2009 (12:42 pm)
Replying to: madmanmoo (Sep 14, 2009 11:41 am) Unless you've put around 20% cash down on the car, you're going to be upside down on a 72 month finance no matter what car it is. Your down $3000 bucks right out the door on most cars you buy.   On some luxury cars, depreciation is BRUTAL. Replies to this message: wdhyte (Sep 14, 2009 6:06 pm) dtownfb (Sep 17, 2009 8:42 am)
#425 of 446 Re: Looking for GAP for yr old used car, int rate over 12% [Mr_Shiftright] by wdhyte Sep 14, 2009 (6:06 pm)
Replying to: Mr_Shiftright (Sep 14, 2009 12:42 pm) I put down roughly 8% by paying the TTL up front in this case and financing ONLY the vehicle...and in todays economy, I'd think GAP would be virtually mandatory for consumers and its surprising how few have even heard of it let alone are aware of the value of it. My dealer didn't even offer it at the time of the sale (and I'd been there for over 4 hours w/a 5 1/2 year old AND a pregnant wife so needless to say I was anxious to wrap up and didn't even think of it, let alone notice the little NA on the side where it said gap insurance); so I just missed it (too bad so sad) and now I'm too late to get it thru them or my lender, so here I am shopping... and so it goes...ah well...luck O the Irish
#426 of 446 shiftright by marsha7 Sep 14, 2009 (6:39 pm)
While this is seat-of-the-pants math, almost any loan over 48 months you will be seriously uspide down for a number of years, unless, as you say, the down payment is at least 20%, and probably more like 25-30%...so many cars depreciate so rapidly, and the loans are paid down so slowly, that the gap is quite wide in the first 3 years...   This is even more so if you roll over negative equity from the trade-in, then even a 25% down paymt probably does not help much at all...   Unless one had $5,000-10,000 sitting around to pay the gap, then gap insurance may be a wise move for most folks...even if you DO have the 5-10K, paying an extra $10/month for the insurance to pay that gap may still be a smart move, rather than depleting your cash stash...   Run the numbers and see if the gamble is worth it for you, and always use the worst case scenario for your math, like totalling the car in Year 1 or 2, as that is when gap ins does you the most good...   Also, remember, I don't care how good a driver YOU are, it's the other guy who may be uninsured when he T-bones you and totals the car... Replies to this message: wdhyte (Sep 16, 2009 11:26 am)
#427 of 446 Re: shiftright [marsha7] by wdhyte Sep 16, 2009 (11:26 am)
Replying to: marsha7 (Sep 14, 2009 6:39 pm) exactly, which is why I carry a standard level (vs. TX minimum) of uninsured/under-insured motorists coverage as well; I trust me, I trust no one else
#428 of 446 wdhyte by marsha7 Sep 16, 2009 (11:52 am)
Not to overdo it, but I carry $100K UM as a basic policy, with a separate $1 million umbrella...after seeing a number of cases where the injured had meds over $250K, and the at-fault driver had minimum limits of $25K, I could see the need for extra insurance in the case of loss of limb, loss of life, or simply serious injury...the add'l $$$ could make life easier if one was unable to work...but that's just me... Replies to this message: wdhyte (Sep 16, 2009 12:23 pm) wdhyte (Sep 16, 2009 1:41 pm)
#429 of 446 Re: wdhyte [marsha7] by wdhyte Sep 16, 2009 (12:23 pm)
Replying to: marsha7 (Sep 16, 2009 11:52 am) I've got the 100/300 for the UM as well but 1M umbrella? just what is an umbrella policy and how much is 1M worth of coverage?! (yikes)
#430 of 446 Re: wdhyte [marsha7] by wdhyte Sep 16, 2009 (1:41 pm)
Replying to: marsha7 (Sep 16, 2009 11:52 am) never mind.Right after I posted the other reply I said 'duh', go wiki the thing which I did so I now have the task of pricing that tomorrow w/my provider. Really good idea...thanks.
#431 of 446 wdhyte by marsha7 Sep 17, 2009 (8:09 am)
I realize that I may be in the minority with a $1 million UM umbrella ($175/year)...but, as a PI attorney, I have seen medical bills easily surpass $250K, and the injured party, now permanently injured, walk away with only $25K or $50K because that was the insurance limit that the at-fault driver had...suing them would do no good, as they could dump the judgment in Chapter 7 bankruptcy...   If the victim had their own UM, and the $1 million umbrella, they could have recovered against their own UM (under-insured, along with uninsured)ins and not been destitute after the wreck...   From a layman's standpoint, the odds of ultra serious injury are quite low, but from a PI attorney's view, this scenario happens more often than one might think, so I see the need to protect myself and family...and, with the cost of an add'l $175 per year, it is not prohibitive...but if one of us was seriously injured, I have a way to recover if the illegal immigrant was uninsured, or the 25 year old deadbeat bought his minimum policy off some TV ad...   YMMV... Replies to this message: wdhyte (Sep 17, 2009 8:25 am)
#432 of 446 Re: wdhyte [marsha7] by wdhyte Sep 17, 2009 (8:25 am)
Replying to: marsha7 (Sep 17, 2009 8:09 am) hhmmmm, excellent advice/view mate...appreciate the feedback; makes me wonder though that if you're the victim in the accident and have to recover against your own policy via the umbrella due to the no-neck being UM, how long it would take your insurance company to drop your butt once they've paid out on it...and good luck finding another insurer once they discover that eh...
#433 of 446 Re: Looking for GAP for yr old used car, int rate over 12% [Mr_Shiftright] by dtownfb Sep 17, 2009 (8:42 am)
Replying to: Mr_Shiftright (Sep 14, 2009 12:42 pm) First off , why are you financing a car for 72 months? maybe buying used is a better option for this person. (I know, i know, used cars are not good enough for most people).   I understand the logic shifty and marsha7 but I don't see Gap insurance as a "must have". Why finance a car that depreciates quickly for so long? You may as well buy an extended warranty and the service contract.

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