2007-03-19 15:56:53 · 6 answers · asked by Anonymous in Cars & Transportation ➔ Insurance & Registration
Whether or not you need it depends on how much you owe on your vehicle.
If your car is totaled in an accident and the insurance company gives you $9,000 for it and you have a loan on it for $13,000 ~ GAP insurance pays the $4k difference.
If your car is paid for or you owe less than Kelly Blue Book, then you don't need it. But, if your car is brand new or you owe more than KBB you should definitely consider it or you may be stuck paying off an auto loan for a vehicle you won't own anymore.
2007-03-19 16:05:41 · answer #1 · answered by d f 3 · 0⤊ 0⤋
Gap insurance is used when you owe more on your loan than the vehicle is worth. So if your loan is for 10grand, and you have a car worth 8grand, you get in a wreck, the insurance company is only going to pay 8grand because that's all the car is worth, so then you bring in your gap insurance, they will cover the rest. Do you need it, I don't know, but you should be able to make a decision based on what you were just told.
2007-03-19 18:59:25 · answer #2 · answered by fisherwoman 6 · 0⤊ 0⤋
If you are leasing a car, ABSOLUTELY.
If you are financing a car, well, it depends on the car itself. Some cars fastly lose their value the minute they're driven off the lot over others. But if you decide to get GAP insurance I wouldn't buy it from the dealers....many insurance companies offer it and it's W A Y less. In CA I paid $20 month for GAP on my 01 VW Jetta through Allstate.
GAP covers what you owe on the car vs. the value of the car in the event of a total loss. GAP does not pay for past due payments and late fees.
2007-03-19 16:09:35 · answer #3 · answered by bundysmom 6 · 1⤊ 1⤋
I generally don't like putting money down on cars. Just enough to cover tax, title and tags. For new cars, that means you have negative equity or are "upside-down" in the car the moment you drive off the lot.
If you pay 20,000 for a car, the moment it leaves the lot, it's down to usually about 18,000 ( or less) If it is totaled as you are leaving the lot ( or soon after) now you are out the money you put down, plus whatever the bank loan left on the car is. If you traded another vehicle in and still owed money, you can see where this could be a problem.
You paid 20,000 for the new car, plus the 1500 or more you still owed on the last car, so the loan was 21500. The new, now totaled car, is worth 18,000, still leaving you with 3500 to pay for.
I'd rather be "suckered" for an extra $300 of gap insurance then be out $3500 if it came down to it.
2007-03-19 16:46:24 · answer #4 · answered by Andrew 3 · 0⤊ 1⤋
YES, gap insurance will ensure that you get the full pay off on your car if it is totaled. Otherwise, if your car is totaled, you can be forced to pay what the insurance won't give you. I wouldn't and don't drive my car without it. It's worth the money!
2007-03-19 16:00:19 · answer #5 · answered by Boots 3 · 0⤊ 1⤋
they just tried to sell something that u dont need...
2007-03-19 16:30:56 · answer #6 · answered by Nice Conv 2 · 0⤊ 2⤋