View Full Version : Gap Insurance
squiggyacfd
05-16-2006, 10:43 PM
My insurance co (Nationwide) does not offer it. Just wondering if you guys have it. Can i get it through an insurance co without buying a whole new policy? Also, does GMAC or would my dealership have it? BTW i am doing that SmartBuy thing and only put down 3000. I just dont want to be owing money if the SS gets stolen or totalled. thanks
ghoster
05-16-2006, 10:44 PM
I have gap insurance through GMAC something or other. I'll see if I can find the number. I got mine when I bought the truck, and it was a one time payment.:cool:
oops...its not GMAC its GAPI. It was something the dealership sold me. It was a one time $499 payment that was added to the loan. It covers me for whatever the insurance doesn't pay if it gets totalled. Seemed like a good investment when you figure how fast these Chevy's lose value.
PEDRO
05-16-2006, 10:58 PM
i tought the dealership offers it,not the insur comp.?
ghoster
05-16-2006, 11:02 PM
i tought the dealership offers it,not the insur comp.?
both can. some insurance companies offer it now. Just gotta ask your insurance company. I know mine doesn't currently, but they are planning on doing it this year.:cool: USAA is my insurance company.
Envoy Fan
05-16-2006, 11:06 PM
It will be much cheaper if you get it from your insurance company vs. buying it at the dealership.
mkaresh
05-16-2006, 11:20 PM
As with all insurance, you're unlikely to come out ahead. Figure the insurance is $500, and you might get upside down, at most, $5000. One in ten chance of totaling the SS? I hope not. Especially if it's fairly new that'd require quite a collision.
But, as with any insurance, if you absolutely cannot afford to have this happen, then buy it.
ghoster
05-16-2006, 11:23 PM
As with all insurance, you're unlikely to come out ahead. Figure the insurance is $500, and you might get upside down, at most, $5000. One in ten chance of totaling the SS? I hope not. Especially if it's fairly new that'd require quite a collision.
But, as with any insurance, if you absolutely cannot afford to have this happen, then buy it.
dude...check your numbers...my 04 is over $5000 upside down still!! after owning it for 2 years!! It was almost $8000 upside down at one year of ownership. Remember, GM screwed all of us that bought them a few years ago when they reduced prices in 05. My trade value went from 18k to 14k in one day.
You are $5000 upside down as soon as you drive just about any vehicle off the lot, definitely when the next year comes out.
Besides if someone hits you, their insurance will only pay the value of your car not what you own. I don't know about you, but I don't trust that many drivers out there. And I may make a mistake that I can't bail myself out of someday.
Unless you put down a good size down payment I would definitely get the gap.
It isn't hard to total a car either.
whatahottie
05-17-2006, 12:15 AM
You are $5000 upside down as soon as you drive just about any vehicle off the lot, definitely when the next year comes out.
Besides if someone hits you, their insurance will only pay the value of your car not what you own. I don't know about you, but I don't trust that many drivers out there. And I may make a mistake that I can't bail myself out of someday.
Unless you put down a good size down payment I would definitely get the gap.
It isn't hard to total a car either.
So true, its amazing what we pay for, on a $20,000 to $50,000 on a new vehicle. As soon as you drive off you just wasted 5g's, just to hit the gas peddle.......:rolleyes: As far as the dealer or insurance company they have a licsence to ream...I think the only thing gap insurance is good for is if you are unhappy with your purchase, you can always total your ride, and get it paid off.
I also thought that gap insurance is only good for x-amount of time....:undecided
Whats the differance insurance is insurance...you just gave them 500 bucks for the hell of it.
Just like warranties at retail stores, just another way to get your money.:yes:
I myself wouldn't purchase a brand new vehicle just on credit alone..:no:
Too much a waste of money...80% of people are upside down on thier vehicle, I say if you have $3.000 to put down on a smart buy, is it really that smart? I would atleast try to have half of what ever your trying to buy...that way if you do total your ride, thats money ahead not upside down
Anyway just my :m2:
It is like an extended warranty, you don't really need it until you really need it. Putting 30-50% down on a vehicle is not exactly the best thing to do since you will lose your down payment in about 3 years. I don't know many people that can afford to put down 50% of a $30-35k vehicle.
GAP insurance doesn't run out until you no longer owe more than the vehicle is worth. I would hope someone would not be stupid enough to total their vehicle to get rid of their loan. For one thing most people's insurance rates will go up a lot and then you risk being injured or hurting someone innocent.
I hope to never use the GAP insurance because that would mean I was in a very big accident. And it isn't hard to be upside down on a loan when some vehicles lose 20 - 30% the first year.
ghoster
05-17-2006, 12:43 AM
It is like an extended warranty, you don't really need it until you really need it. Putting 30-50% down on a vehicle is not exactly the best thing to do since you will lose your down payment in about 3 years. I don't know many people that can afford to put down 50% of a $30-35k vehicle.
GAP insurance doesn't run out until you no longer owe more than the vehicle is worth. I would hope someone would not be stupid enough to total their vehicle to get rid of their loan. For one thing most people's insurance rates will go up a lot and then you risk being injured or hurting someone innocent.
I hope to never use the GAP insurance because that would mean I was in a very big accident. And it isn't hard to be upside down on a loan when some vehicles lose 20 - 30% the first year.
It was much easier for me to pay $500 one time for the gap than make a massive down payment so I wouldn't be upside down. It seemed like a good investment to me. Now on my wifes Honda, its a waste of money. We have owned it one year, and its worht almost exactly what we owe. Just depends on what the vehicle you are buying is going to be worth.
Bergie
05-17-2006, 09:24 AM
You can buy gap insurance online for $299. It's worth it when you owe thousands more than your vehicle is worth when your insurance company totals it or it's stolen, you're covered.
http://www.gap-insurance.com
Gap can be purchased anytime within 12 months of purchase or refinance. It covers the Gap and up to $500 of YOUR collision deductible if your vehicle is totaled for any reason throughout the life of your loan up to 84 months.
blautens
05-17-2006, 09:43 AM
I've never been in a position to think about/need gap insurance but my close friend here at work just totaled his 2005 Chevy Malibu Maxx, which of course was horribly upside down (the standard poor resale value issue) and his gap insurance covered the several thousand dollar difference.
Here's the scary thing - it wasn't that bad of an accident. It's just too easy for insurance companies to total certain cars - they aren't worth fixing, according to the adjuster.
He got smarter this time in his choice of cars and bought a new Accord SE, out the door only $20k - much more likely to hold it's value...but even still he didn't get the gap insurance this time. An interesting gamble from someone who JUST cashed in on gap insurance. He figures a 2006 Accord that cost him $20k out the door won't depreciate faster than his loan, or at least not dangerously so.
Made me think if I was in the position of purchasing a car with a poor depreciation rate and a fat loan, maybe gap insurance through a good company (I have USAA) would be worth it.
sbchamps
05-17-2006, 10:17 AM
If you do the SmartLease, then GAP insurance is included from GMAC. If you purchase, you would need to most likely buy it.
Envoy Fan
05-17-2006, 11:51 AM
If you do the SmartLease, then GAP insurance is included from GMAC. If you purchase, you would need to most likely buy it.
Included at no extra charge, or as an extra charge on one of the many lines of information?:undecided
Steve02SLT
05-17-2006, 02:14 PM
For a smartbuy or smartlease I'm almost 100% positive it'll include gap insurance. Technically the vehicle isn't yours, and they'll need to protect themselves, so it should be included. Gap insurance is nice, but if you put down enough money, or buy a car that holds its value, fugetaboutit. What kind of residuals are you guys getting on the TBSS's?
shatz
05-17-2006, 02:24 PM
I purchased GAP with TB b/c I was burnt with my last vehicle. It was beyond repair and I had to come up with 2G to cover the difference btwn what I owed and what it was worth. I added my GAP into my payment and it went up like $12 a month......I think it is worth the money, in fact I will always get it with every new vehicle I buy from now on due to the rates that they depreciate at.
dntnvme
05-17-2006, 03:30 PM
Well I got the package deal which included GAP, Theft, Exterior, and Interior. I feel good to know that if something happens I am covered all the way. I also got this through GMAC.
squiggyacfd
05-17-2006, 06:01 PM
i just spoke to the dealer and they said that i could only purchas gap at the time of sale> she said that i signed some paper saying i didnt want gap> this dealership seems really shady and im stuck with them for at least three years> hopefully they will just take the truck back in three years and i can go somewhere elese>
Steve02SLT
05-17-2006, 09:51 PM
You can get gap insurance from your insurance company also.
i just spoke to the dealer and they said that i could only purchas gap at the time of sale> she said that i signed some paper saying i didnt want gap> this dealership seems really shady and im stuck with them for at least three years> hopefully they will just take the truck back in three years and i can go somewhere elese>
That sounds about right though. I remember signing the GAP form everytime I bought one of my cars. With GM cars you will always either owe or paid more than the car is worth. If I had $20000 extra, I wouldn't waste my time with a down payment on most cars. I would put it towards my house loan. At least it will hold its value and then some. I would probably save another $30-40k in future interest also.
shatz
05-17-2006, 11:27 PM
i just spoke to the dealer and they said that i could only purchas gap at the time of sale> she said that i signed some paper saying i didnt want gap> this dealership seems really shady and im stuck with them for at least three years> hopefully they will just take the truck back in three years and i can go somewhere elese>
I know with my ins. (State Farm) they don't have GAP, but something similar called "umbrella insurance" which will act in the same way. I would recommend checking into it, especially when it involves something as expensive as a vehicle.
Silver_06
05-18-2006, 06:39 AM
I financed my SS through USAA and gap insurance was thrown in for free. Dealer tried to sell me a gap insurance package that would have added a few bucks to my monthly payment so I passed on that offer.
ghoster
05-18-2006, 11:02 AM
I financed my SS through USAA and gap insurance was thrown in for free. Dealer tried to sell me a gap insurance package that would have added a few bucks to my monthly payment so I passed on that offer.
Brand new thing to USAA. As of November 05 they didn't offer it. :cool:
blautens
05-18-2006, 11:22 AM
Brand new thing to USAA. As of November 05 they didn't offer it. :cool:
That sorta stinks...USAA is normally awesome...I try to use their services whenever possible, from insurance and banking to buying flowers.
ghoster
05-18-2006, 12:12 PM
That sorta stinks...USAA is normally awesome...I try to use their services whenever possible, from insurance and banking to buying flowers.
I knew it...your a flower child aren't you????:raspberry I love USAA's insurance. Nobody can touch there rates. I wish they had had the Gap insurance when I bought my most recent vehicles. I will definately get it next time!:cool:
Actually, USAA wants double for my house insurance and around the same for my TB/EN. I haven't had any problems with Allstate.
Silver_06
05-18-2006, 08:44 PM
Brand new thing to USAA. As of November 05 they didn't offer it. :cool:
It's not new. I've financed 6 cars with them since October 2003 and had the free gap insurance from them every time.
blautens
05-19-2006, 01:55 PM
Actually, USAA wants double for my house insurance and around the same for my TB/EN. I haven't had any problems with Allstate.
You have to look at averages around the country, though. USAA is consistently rated in the top 5 (and quite often #1 or 2) in BOTH rates and customer service by Consumer Reports. That's almost unheard of.
Of course, they discriminate, so to speak, so they can.
And you're not allowed to complain about house insurance until you've been in the eye of 3 hurricanes in 14 months. Then you'll know what house insurance problems are like. :)