Gap Insurance

[daveleeprius]

Gap Insurance? I figure that clothes made at The Gap are pretty cheaply constructed, they're liable to break and tear at any moment!

We got the Gap Insurance for our Prius. It was only $199 and worth it in my opinion.

Dave

[Darken]

<div class='quotetop'>QUOTE(Highly ImPriused @ May 1 2007, 10:47 AM) [snapback]433208[/snapback]</div>

Gap insurance pays the difference between the market value of your car and the amount you still owe on it when it's totaled. If you don't owe more than it's worth, gap insurance does not benefit you in any way that I know of.
[/b]

Another point I forgot to add is despite the resale value of the prius being better then most, you are going to owe more then its worth during the early stages of your loan in most cases (regardless of the loan)...I guess the bottom line is you know your financial situation so make the decsion that works for you, but $200 is nothing compared to the peace of mind you have in the event of a total loss.

[PriusBoyAZ]

Why would anyone pay $200 for GAP insurance up front? What a terrible investment.

GAP insurance on my auto policy adds $14 every six months, or just under $30 per year. The $200 you pay your dealer for GAP insurance up front will buy you over 7 years of GAP insurance on your standard auto policy. You probably won't have your Prius that long.

Call your insurance company, see how much GAP is through them -- you'll end up saving money.

[surfacinglove]

<div class='quotetop'>QUOTE(PriusBoyAZ @ May 1 2007, 09:32 AM) [snapback]433285[/snapback]</div>

Why would anyone pay $200 for GAP insurance up front? What a terrible investment.

GAP insurance on my auto policy adds $14 every six months, or just under $30 per year. The $200 you pay your dealer for GAP insurance up front will buy you over 7 years of GAP insurance on your standard auto policy. You probably won't have your Prius that long.

Call your insurance company, see how much GAP is through them -- you'll end up saving money.
[/b]

I purchased GAP through my dealer when I got my Pri 4 weeks ago for $700!! Yesterday I found out from my auto insurance they could do it for $9 every six months... that's like a $600 difference. I got ripped...

Does anyone know if dealer GAP insurance is refundable like the extended warranty is after recently buying a new Pri? I'm going to try and have the dealer refund me... they won't like it though... I don't see why I can't have it refunded and have the prorated amount refunded... right?

[IsrAmeriPrius]

<div class='quotetop'>QUOTE(priusmaybe @ Apr 30 2007, 08:36 PM) [snapback]433027[/snapback]</div>

Who really needs Gap Insurance? [/b]

My insurance company, 21st Century, pays the full new car replacement value in case of a loss during the first year of ownership. That does away with the need for gap insurance. Check with your car insurance company before you buy gap insurance.

[surfacinglove]

Ok, so I got the dealer to refund me the GAP I bought through them ($700) for $1.50 a month through Safeco.

So let me get this straight... If I wreck my car and Safeco declares it a total loss... (I currently owe $31,000 or so on my loan with Capital One (1st payment coming this month) with about $6000 negative equity rolled in from a trade-in) then Safeco would pay off the worth of the car, plus the difference in total loan amount (GAP) to Capital One. And I wouldn't have a car or car payment anymore? Would I just start from scratch/clean slate, having to find a new car, etc...? I think Lively Chick is in this scenario currently... you there?

Would Safeco cover the FULL difference (including the negative equity from the trade-in, after-all, is IS included in the total amount of the loan used to purchase the new car (which is what their policy states).

The dealer also mentioned how Safeco, trying to make/save money, in this situation would try as hard as possible to have my car repaired instead of declaring it a total loss and assuming that extra $6000 on the loan amount... which would leave me with a not so perfect repaired car if the accident was extreme... what do you think?

[Darken]

<div class='quotetop'>QUOTE(surfacinglove @ May 3 2007, 01:52 PM) [snapback]434851[/snapback]</div>

Ok, so I got the dealer to refund me the GAP I bought through them ($700) for $1.50 a month through Safeco.

So let me get this straight... If I wreck my car and Safeco declares it a total loss... (I currently owe $31,000 or so on my loan with Capital One (1st payment coming this month) with about $6000 negative equity rolled in from a trade-in) then Safeco would pay off the worth of the car, plus the difference in total loan amount (GAP) to Capital One. And I wouldn't have a car or car payment anymore? Would I just start from scratch/clean slate, having to find a new car, etc...? I think Lively Chick is in this scenario currently... you there?

Would Safeco cover the FULL difference (including the negative equity from the trade-in, after-all, is IS included in the total amount of the loan used to purchase the new car (which is what their policy states).

The dealer also mentioned how Safeco, trying to make/save money, in this situation would try as hard as possible to have my car repaired instead of declaring it a total loss and assuming that extra $6000 on the loan amount... which would leave me with a not so perfect repaired car if the accident was extreme... what do you think?
[/b]

Wow! Nice Job in getting the dealer to refund your money, that was a rip off no matter how you slice it. If this thread has taught people nothing else, look into GAP through your Insurance Company its worth the dollars for peace of mind and obviously much cheaper then you may ever find at your dealer.

Now as for your question. The whole purpose of GAP is to cover the full balance on your loan regardless of the current market value for your vehicle in the event of a total loss. It doesn't matter what you wrapped into the loan...the balance is paid in full and you start fresh in looking for a new vehicle. Its primarily geared for anyone with a negative equity situation, but as I mentioned previously everyone is in the same boat in the early stages of a loan.

I'm not sure what to tell you about your insurance company. It is a valid assumption that with GAP on your policy they may do more then the average company to prevent a total loss from occuring, but that is really out of your control. Either way your covered.

[priusmaybe]

<div class='quotetop'>QUOTE(Darken @ May 3 2007, 03:14 PM) [snapback]434918[/snapback]</div>

Wow! Nice Job in getting the dealer to refund your money, that was a rip off no matter how you slice it. If this thread has taught people nothing else, look into GAP through your Insurance Company its worth the dollars for peace of mind and obviously much cheaper then you may ever find at your dealer.

Now as for your question. The whole purpose of GAP is to cover the full balance on your loan regardless of the current market value for your vehicle in the event of a total loss. It doesn't matter what you wrapped into the loan...the balance is paid in full and you start fresh in looking for a new vehicle. Its primarily geared for anyone with a negative equity situation, but as I mentioned previously everyone is in the same boat in the early stages of a loan.

I'm not sure what to tell you about your insurance company. It is a valid assumption that with GAP on your policy they may do more then the average company to prevent a total loss from occuring, but that is really out of your control. Either way your covered.
[/b]

My current co Geico does not offer GAP, Neither does State Farm, hmmm Allstate qoute was crazy.

[chuck_k]

guys, it's just gap insurance. Not GAP insurance. GAP doesn't stand for anything. Quite literally, it insures the gap between what you owe and what the car is worth.

[opus17]

It seems to me that if you are in a situation where you owe more money on a loan than what the car was worth. maybe buying a new car wasn't the best idea, financially. Having to buy insurance on top of that makes it even a worse idea.