Credit Card Center Advertiser Disclosure†
02-04-2013 06:18 PM
So I purchased GAP insurance for my vehicle but not really sure if I need it now. I have less than a month to contact the dealership to recieve full refund credit to my account balance. GAP insurance was $750. My current account balance is around 11k on a 2011 Hyundai Accent. Keep it or cancel it?
Thanks in advance
02-04-2013 07:47 PM
02-05-2013 03:47 PM - edited 02-05-2013 03:48 PM
I'd keep it. Why are you wanting to cancel the policy? My local dealer told me they don't issue money to customers on policy refunds (GAP & Maintence Plans). It just comes off your total loan balance so while your payments stay the same it just shortens your term. No idea how your dealer runs things.
I put $1500 down on my '13 sonata..$500 from competitor coupon and $1000 for financing thru HMFC and took the GAP.
02-07-2013 11:25 AM
DH didnt have it on his first two cars in 2006 & 2007. The first one was totaled after 6 months - broken axel, but otherwise fine. We are STILL paying the loan off because he had no GAP so no coverage for the loan. The second one in 2007, he still didnt get GAP and it was totaled a few months later. Still paying for this loan too -becaue he didnt have GAP. All cars since have had GAP!!! Totaled another one in 2011 (not his fault this time), and GAP covered the loan.
Its not a waste of money - keep it.
02-07-2013 10:13 PM
Is there a difference between GAP coverage purchased at a dealer vs. GAP coverage purchased through your regular car insurance company? I have GAP coverage for my new Kia Soul through Esurance and it's about $3/month.
02-08-2013 09:17 AM
The GAP policy I had through insurance (Progressive) was limited to a certain percentage of the vehicle value. Although this would probably cover the shortfall if the vehicle was not totally underwater it may not cover the full loan in all cases. The GAP purchased with the loan will generally cover the remainder of the loan (with a small deductible in some policies) and is not dependent on vehicle value.
02-08-2013 11:17 PM
Wholesale value on your car is around 8k-9k so i would say keep it, but compare the price of it through your insurance company to the price you would get back. Chances are its cheaper through your car insurance because you can pay monthly on it and then cancel once you have reached a point when you have equity in the car.
02-09-2013 03:00 PM
If your gonna get GAP insurance just get it from the Dealer. The GAP that insurance companies offer are horrible in comparison.
02-10-2013 04:07 AM - edited 02-10-2013 04:09 AM
GAP is just another way for auto dealers to make money. If the consumer does the right thing, and puts a good down payment on a car, GAP is not needed at all. Your automotive retailer will pay RETAIL value of the vehicle if it's stolen/totaled.
People who put no money down, also cost themselves thousands more in charges, and should have GAP insurance also. Put the most money down you can, get the lowest interest rate possible, and the shortest term you can afford. You wont need GAP. Also, be responsible on the road. There's no such thing as an accident. It's negligence.
Having 3 cars totaled in 6 years..... I'm sorry, but you two have issues. Either start putting yourselves in better driving situations, or start leaving as much room as you can between others. There's NO excuse for having to make THREE totaled claims on your insurance in 6 years. No wonder why we all pay so much for insurance.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.