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Gap insurance?

Discussion in 'Dealers & Pricing' started by Lilycar, Aug 7, 2013.

  1. Lilycar

    Lilycar New Member

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    Vehicle:
    2013 Prius
    Model:
    Two
    Hi there! We are in the process of buying our first Prius - it's a new base model Two. I've been eyeing the car for a long time - and when the 2005 Corolla LE was rear ended and totaled last week, we got a Prius as a rental. I quickly fell in love. I know everyone is different, but for me, the Prius is a luxury car - I love so many things about it! The gas mileage is just a bonus feature.

    My question - we are financing almost the entire car with a small down payment. We got the zero percent APR deal and so we are using most of my settlement payout on other high interest debts (we only have one car so we can definitely afford the higher monthly payment - just didn't want to pay interest).

    We're closing on the car tomorrow, and I am wondering if we should we consider gap insurance, and if so, with who? We are currently GEICO customers but I know Toyota offers it as well. Our other cars were all inexpensive used Corollas, so this is new to me. I know basically what gap insurance does, but I don't want to buy something unnecessary.

    Thanks in advance for your help, and if this is the wrong forum, please let me know!
     
    #1 Lilycar, Aug 7, 2013
  2. MaggieM11

    MaggieM11 Junior Member

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    I have always been told to get gap insurance. In case of a major accident or something you know you are completely covered.

    I am in the process of buying my prius c (waiting for it to arrive) and I also have Geico. They do not offer gap insurance unfortunately so I need to speak with Toyota.

    If anyone else knows of another route chime in! : )
     
    #2 MaggieM11, Aug 7, 2013
    Lilycar likes this.
  3. ETC(SS)

    ETC(SS) The OTHER One Percenter.....

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    Usually.....I advise people that if they "need" GAP insurance, then they need to rethink the purchase. However (comma!) it's darn hard to come away from a low down payment deal without taking it in the shorts...and if you buy NEW with no down money you ARE going to be driving a car that you owe more on than it's worth, and guess what?
    Yup.
    An insurance company is only going to pay you what a car is WORTH (if that!) if you have to file a claim.

    Mr Miagi always says the best way to avoid a hit like that is not to be there....but.
    You've already made up your mind on a new base model, which is good at least in that you're wanting a base model.
    Besides.....Priuses are fairly cheap to operate if you keep them for a while.
    Please don't get GAP coverage at the dealership.
    You buy CARS at a dealership.
    You buy INSURANCE either online or from an Insurance agent.
    You buy MONEY (or the use of money in the form of a loan) from a BANK or Credit Union.

    If you qualify for the 'dangle rate' then your credit is in fairly good shape. You may wanna consider pre-qualifying for a loan through a local CU. My local CU is offering as low as 0.99.
    Usually?
    If you qualify for and avail yourself of their dangle rate, then you're not going to get their best OTD price.
    Think things over and wear out some pencils before you sign!

    Good Luck!
     
    #3 ETC(SS), Aug 7, 2013
    Lilycar and xpcman like this.
  4. Lilycar

    Lilycar New Member

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    Vehicle:
    2013 Prius
    Model:
    Two
    Thanks for the response - this is helpful. We went to our credit union first - they were offering 2.79%. I know I could get the car for about a $1000 dollars cheaper from a local competitor as advertised, but they aren't offering the 0.0 % rate, so in the long term I figured we were better off with the 0%. BTW, we're getting just under 23,000 for the price with the 0 % APR - is that a bad deal?

    Anyway, about the gap insurance - so I should stay away from dealer plans, but should I look elsewhere? Is gap insurance a rip off no matter what?

    Thanks!
     
    #4 Lilycar, Aug 7, 2013
  5. MaggieM11

    MaggieM11 Junior Member

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    If you get if for a fair price I wouldn't consider it a rip off. I want it even if its just piece of mind until the car is paid off. Bad things happen everyday and I would rather pay a little to protect myself and my brand new car. That's just me.
     
    #5 MaggieM11, Aug 8, 2013
    Lilycar likes this.
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