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-   -   GAP Insurance (http://www.jeepgarage.org/f73/gap-insurance-33575.html)

rustyosaurus 01-05-2012 06:49 PM

GAP Insurance
 
Does anyone purchase GAP insurance? I never have with a new car but I've also never spend $41,000 either. It's $299 with the credit union I am going to use.

gt6974a 01-05-2012 07:11 PM

Re: GAP Insurance
 
yeah, I'm in the same boat, I need to check with my insurance (USAA) and see if it's included anyway.

I know the general opinion is 'No', but if I'm putting money down, I might want it. If I don't put any money down, will probably not get it.

Chi-One 01-05-2012 07:51 PM

Re: GAP Insurance
 
I did. It may be required by your lender. It's like PMI on a mortgage.

1200RT-P 01-05-2012 07:53 PM

Re: GAP Insurance
 
YES YES YES. Why wouldn't you buy it, especially for $299 (I've paid $500 range in the past). Its already included on most leases.

If you're already in an equity position, due to cash down or trade, skip it. If you're only putting tax and license down, please buy it.

rustyosaurus 01-05-2012 08:07 PM

Re: GAP Insurance
 
Quote:

Originally Posted by 1200RT-P (Post 546439)
YES YES YES. Why wouldn't you buy it, especially for $299 (I've paid $500 range in the past). Its already included on most leases.

If you're already in an equity position, due to cash down or trade, skip it. If you're only putting tax and license down, please buy it.

why skip it if you're already in an equity position? you're still out that money if it gets totaled, aren't you? i'm trading in and putting cash down so I'll only be financing 13k.

Knightrider03m 01-05-2012 08:23 PM

Re: GAP Insurance
 
Yes do it, its cheap insurance if you total out your truck. Plus I have found that its cheaper going that instead of buying gap insurance via your insurance co

Mmartin 01-05-2012 08:34 PM

Re: GAP Insurance
 
Gap insurance is not required in most cases, but is a good idea. What GAP insurance is, is a policy that gives you protection. If you have a loan on your vehicle at at any point while paying off the loan then vehicle is totaled, the Gap insurance guarantee the vehicle is paid off. So if you aren't putting a lot of money down, drive excessively high miles or are rolling in any negative equity you definitely need it. If you putting a fair amount down on top of the taxes and fees, it is up to you but cheap insurance. And yes most leases include it and require it. Just keep in mind when considering it you are paying $40k + for a new jeep, even driving average miles and taking good care of you jeep it depreciates constantly and chances are at some point you will be in a negative equity situation.

jacobsed 01-05-2012 08:36 PM

Re: GAP Insurance
 
If you're financing then you can't afford the vehicle. Go pay cash for a used vehicle you can afford.

1200RT-P 01-05-2012 08:44 PM

Re: GAP Insurance
 
Quote:

Originally Posted by rustyosaurus (Post 546450)
why skip it if you're already in an equity position? you're still out that money if it gets totaled, aren't you? i'm trading in and putting cash down so I'll only be financing 13k.

GAP covers negative equity, not money down. So - if you owe the bank more than an insurance payout, you will be responsible for the difference. If you are in an equity position, an insurance payout should cover your bank note.

1200RT-P 01-05-2012 08:44 PM

Re: GAP Insurance
 
Quote:

Originally Posted by jacobsed (Post 546478)
If you're financing then you can't afford the vehicle. Go pay cash for a used vehicle you can afford.

Please refrain from posting off topic statements on this forum - thanks.

CaptRB 01-05-2012 08:49 PM

Re: GAP Insurance
 
Jacobsed, I own several late model cars and a 35 foot racing sailboat. I also have a nice house. I now own some of them and financing made it possible. It's rather silly to suggest that financing means you can't afford something since it's pretty much the only way most people can afford anything. I have three doctors in my family and they would NEVER plunk down 45K for a car in one shot. They do better things with that money and like a lot of us, write off part of the car anyway.

Also: We did NOT get Gap insurance on a 2008 Kia Sedona. Then it was wrecked and insurance would only pay 13K of the 19K owed. But guess what? We never signed the WAVER for the Gap insurance which is required to be offered by the dealer and so Kia had to pay the outstanding balance.

Cheers,


Robert B
NY

1200RT-P 01-05-2012 09:14 PM

Re: GAP Insurance
 
Guys - lets not get into an argument about paying cash vs. financing vs. leasing - there are TONS of threads on that topic. Lets stick to GAP insurance, please.


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