have a car and now I owe more than the cars worth,do i need gap insuance and where do I get it?

Answer 1

I love GAP questions!! I sell it :)

Yes, you need GAP coverage. In a case of upside down financing, you should have the extra covered through GAP. Depending on what you owe on your car, your price may vary.

You can check with your insurance company to find out how to obtain it. Most sell it now.

Here's a typical breakdown of how it pays:

Key Benefits of Total Loss Coverage:

Protection is provided for the term of the vehicle loan up to 84 months
Protection is available for covered vehicles valued up to $100,000
Benefits are paid up to $10,000
The insurance deductible is covered up to $1,000
Benefits are available for new or used covered vehicles
60-day review period
Prices are as follows:

Loan
$250 = one time payment in full
$265 = 5 pay option ; $50 down payment & 5 monthly payments of $43 (w/$3 processing fee included per month)

Lease
$300 = one time full payment
$315 = 5 pay option; $60 down payment & 5 monthly payments of $51 (w/$3 processing fee included per month)

Answer 2

I would recommend it if you can get the coverage. If something happens to your car, the insurance company will only pay up to the value of the car unless you have the gap coverage. You will owe the financing company the difference. It would really suck to have to pay for a car you don't even have any more.

It's a lot cheaper to get the gap insurance added onto your regular car insurance policy. If you get the gap coverage through the financing company, you will pay a lot more for it. (We pay $20 a year through the insurance, and it would have been about $120 a year through the auto financing.)

It's probably already too late to get it through your financing company, anyway. Call your insurance agent.

Answer 3

It's most often sold by the bank or finance company. Check with your lender. Some insurance companies make it available as an optional coverage on your auto insurance. Check with your agent.

Answer 4

Instead of paying for insurance try making larger payments-Do yourself a financial favor.

Answer 5

You get it from your car insurance carrier - just give them a call and ask for it.

Answer 6

You usually can buy that insurance from your finance place. I did when I refinanced my van last year.

Answer 7

Few insurance companies offer it... progressive and explorer insurance that I am aware of. it depends on how deep you are above?

Answer 8

you dont need it but it would be a really nice thing to have