GAP insurance

[unique2006]

I know you can get GAP insurance when buying from a dealer, but im getting direct through toyota, any ideas? I was thinking it might be through the loan company?

[DanMan32]

I started a thread on this about a month ago.

There are a few ways to get GAP insurance. It is insurance, as the name implies. It can be obtained through the dealer, just as the finance can, through the financier though it may be underwrited by someone else, through your automotive insurance provider, or possibly through a channel independent from above.

My original GAP was through the dealer and handled by some company, but now is handled through my current financing since I refinanced. I am hoping someone in the SE area knows who the dealers are using, as I keep losing the paperwork.

[LisaMarli]

It can be gotten from all three. But check with your Auto Insurance Company first. A lot of them are providing 1st year "gap" insurance, by covering your car for full sticker during the first year.

Also note - If you can take the financial hit of a few thousand, don't buy Gap Insurance at all. The chance of your car getting totaled in the first two years are slim. And Blue Book (the value at time of total loss) is pretty much sticker for Priuses any way.

Lisa

[DanMan32]

I disagree. Price of GAP is small, it cost me $350 when I refinanced, and $450 the first time. Insurance play too many games, and unless you put a bunch of cash up front, you can easily lose.

Case in point:
I bought my '99 Saturn SL2 for $11K out the door and financed it all, no GAP. Paid it off by my credit card, as the rate was much lower. "what's in your wallet?"
Anyway, two years later and 104 on the odometer someone rear-ends me. Both my insurance and his values the car under $4K, yet my card still had $6K on it for the car. I am out $2K even though I actually have been paying ahead of the 4 year term.

[micheal]

GAP isn't going to say everyone money if they get totalled.


With the high resale value of the Prius and a 25% downpayment, if we got totalled we would easily get the $17K left on our loan on a loaded Prius with only 10,000 miles.

On a car with modest to steep depreciation (or even a Prius with small or no downpayment and not making double payments or something like that), GAP is good, IMO, but only in those circumstances.

[kartanoman]

I replied to Dan's original thread - saying that I was going to get it. Turns out that I'll be getting it for nothing since we're using USAA to finance our new vehicles and it's included in the loan ... not bad if I say so myself!

Peace!