Anyone know exactly how it works....I know what the salespeople told me....But of course that doesn't necessarily mean they are right...Just curiuos if the unerwriters try to fight the payout in any way
GAP Insurance
- Thread starter 99lightsvt
- Start date
No they are pretty good about it. It is pretty clear cut. They handle the difference between what your car is worth and what is owed. As long as your loan was structured in accordance with the specifics of the policy.
Yes being in the Auto sales industry I see this on a regular basis. The benifit will vary for you depending on the value of your car versus what you owe. If somthing happens like SVTfan said your covered. Take the cost of it and then figure out how much you'd loose if you somthing happened, its up to you. But!! some banks require it. And leases do as well.
Good luck
Good luck
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My experience is GAP is built into every new lease. If a dealer is trying to charge extra for it, go elsewhere!!!
well i had an old 99 Jeep Cherokee and DID NOT have gap insurance on it and I owed alot more than the vehicle was worth...I ended up rolling it on the highway (due to stupid mechanics over tightening the lug nuts and one of them falling off and locking up the wheel) but anyways they insurance Co. was only gonna give me what it was worth and was like $5k lower than what I owed. It was a MESS...had to go through arbortration and all kinds of shit to get the car paid off.
Get Gap...just incase...mine was only $200...deffintaly worht it IMO!!
My .02 cents
Get Gap...just incase...mine was only $200...deffintaly worht it IMO!!
My .02 cents
i would get it if you owe money on your car. since the car will depreciate, and you will hate yourself if in two years or so you have an accident, and the insurance company will only pay so much, and you get hung with the bill for the rest. trust me, had it happen. really pissed me off to have to pay 2k more on a totalled car. basically the gap will cover that difference it what the car is worth and what the insurance company will pay for your totalled car.
Thats what I think...because a car can depreciate more than what you pay in a year, especially if your intrest rate is high and also because most of your payments tend to go towards intrest at the begining of your loan and not the actually cost of the car.
You might not need to purchase the gap insurance. I would check with your insurance company first because I know that my insurance company, 21st Century, covers the 'gap' during the first year, which from my understanding is normally the only year in which your loan is more than the value of the car, however, this also assumes that you do not finance more than the book value of the vehicle as stated above.
To my knowledge GAP covers the difference in what you have paid off and what the remaining balance is on your finanace/lease in case the car is stolen/totalled.
ie : You finance a car for 25k at 1,000 a month. 5 months in the car is totalled. The gap insurance will pay the financer the 20k owed on the finance. At least how that is how it worked for me.
ie : You finance a car for 25k at 1,000 a month. 5 months in the car is totalled. The gap insurance will pay the financer the 20k owed on the finance. At least how that is how it worked for me.
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deannyc said:
Actually this is how it works, but the end result is the same, the loan gets paid off.
You finance the car for $30K, five months later the car was totaled, at the time of the accident you owed $27K, your insurance company only valued the car at $25K, the gap insurance would cover the $2K difference that your regular insurance company will not, so that the loan gets paid off.
For some reason a friend of mine has gap and totaled his truck but they are saying he still owes 3k on the truck. I told him to get a lawyer because something sounds fishy.
saved me about 4 grand on ,my 03 cobra.
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