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Frequent Contributor
NewbieReed
Posts: 416
Registered: ‎12-05-2012
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Re: Should I keep GAP insurance?


mtrsprt wrote:

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.

 

NewbieReed.........

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.


Bahahaaa! I cant help but laugh instead of being offended by the rudeness of ur post.  Way to put it nicely there! But ummm no, HE certainly had issues - no doubt about that. The two cars totaled were before our marriage and before we were even dating. Who knows what the heck he was doing -- he was an irresponsible 18 year old Navy brat . Psssh, oh well.  What's done is done. 


As for the third car that was totaled in 2011, we did nothing wrong. We were stopped at a red light and the person behind us "did not see" the light because he was too busy yapping on his phone. He rear ended us at 40MPH right into an intersection. . . . So ummm....please, think before u speak. Or at least ask questions before jumping to conclusions about my post. I was simply trying to give advice to the OP. 

 

Enjoy ur insurance premium ;-)

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Frequent Contributor
mtrsprt
Posts: 307
Registered: ‎07-27-2011
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Re: Should I keep GAP insurance?


NewbieReed wrote:

mtrsprt wrote:

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.

 

NewbieReed.........

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.


Bahahaaa! I cant help but laugh instead of being offended by the rudeness of ur post.  Way to put it nicely there! But ummm no, HE certainly had issues - no doubt about that. The two cars totaled were before our marriage and before we were even dating. Who knows what the heck he was doing -- he was an irresponsible 18 year old Navy brat . Psssh, oh well.  What's done is done. 


As for the third car that was totaled in 2011, we did nothing wrong. We were stopped at a red light and the person behind us "did not see" the light because he was too busy yapping on his phone. He rear ended us at 40MPH right into an intersection. . . . So ummm....please, think before u speak. Or at least ask questions before jumping to conclusions about my post. I was simply trying to give advice to the OP. 

 

Enjoy ur insurance premium ;-)


Sorry if I came out harsh.  The 2011 accident, may have been bad place at a bad time.  As for insurance premiums.  50% of the premium is based on your credit score now.  I have 19 years totally claim free.  A decent, but not perfect auto credit score, and my premium for insuring a 2013  $47,000.00 car, and a $9000.00 car is very affordable. (Under 1000.00/year for full on both).


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Valued Contributor
Scupra
Posts: 1,444
Registered: ‎07-12-2012
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Re: Should I keep GAP insurance?


mtrsprt wrote:

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.

 

NewbieReed.........

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.



This statement is beyond ignorant.

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sphinx313
Posts: 567
Registered: ‎02-12-2011
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Re: Should I keep GAP insurance?

Not TOTAL ignorance, though. Negligence is negligence, you really can't spell it any better. Be it distracted driving, drunk driving or driving a vehicle unfit for operation. In fact, the only NON-negligent "accident" I can muster up would be someone with an unknown medical condition suffering complications and crashing their vehicle as a result. That and of course manufacturer defect. Everything else is negligence. The statement doesn't refer to the innocent driver sitting at a red light, because it is likely the person that hit the driver at the red light was indeed negligent. While I've only been driving for 11 years, I am ticket and accident free. By no means is this "luck", just ask my Casino how my luck is lol.



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Scupra
Posts: 1,444
Registered: ‎07-12-2012
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Re: Should I keep GAP insurance?


sphinx313 wrote:

Not TOTAL ignorance, though. Negligence is negligence, you really can't spell it any better. Be it distracted driving, drunk driving or driving a vehicle unfit for operation. In fact, the only NON-negligent "accident" I can muster up would be someone with an unknown medical condition suffering complications and crashing their vehicle as a result. That and of course manufacturer defect. Everything else is negligence. The statement doesn't refer to the innocent driver sitting at a red light, because it is likely the person that hit the driver at the red light was indeed negligent. While I've only been driving for 11 years, I am ticket and accident free. By no means is this "luck", just ask my Casino how my luck is lol.


I feel like his statement was directed towards people contemplating GAP. I felt like he was saying "be careful and you wont need GAP" maybe I took it wrong. Just because you are a careful driver doesn't mean you wont ever end up needing GAP, whether you were negligent or not.. Obviously there is always someone who was negligant...

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Frequent Contributor
mtrsprt
Posts: 307
Registered: ‎07-27-2011
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Re: Should I keep GAP insurance?


Scupra wrote:

sphinx313 wrote:

Not TOTAL ignorance, though. Negligence is negligence, you really can't spell it any better. Be it distracted driving, drunk driving or driving a vehicle unfit for operation. In fact, the only NON-negligent "accident" I can muster up would be someone with an unknown medical condition suffering complications and crashing their vehicle as a result. That and of course manufacturer defect. Everything else is negligence. The statement doesn't refer to the innocent driver sitting at a red light, because it is likely the person that hit the driver at the red light was indeed negligent. While I've only been driving for 11 years, I am ticket and accident free. By no means is this "luck", just ask my Casino how my luck is lol.


I feel like his statement was directed towards people contemplating GAP. I felt like he was saying "be careful and you wont need GAP" maybe I took it wrong. Just because you are a careful driver doesn't mean you wont ever end up needing GAP, whether you were negligent or not.. Obviously there is always someone who was negligant...


It's not being careful with GAP for all of it, but setting yourself to go upside down on a car note is the majority of it.  Banks/dealers are targetting consumers to lenghten terms of loans to make the vehicle look more "afordable".  Also, less money down required.  Keeping the loan term to a minimum as possible, while putting down the largest down payment possible, will save a whole ton of money in the long run, while also not acquiring nor needing GAP coverage.  Negligence and insurance claims should not technically have anything to do with GAP.


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maiden_girl
Posts: 2,102
Registered: ‎12-29-2011
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Re: Should I keep GAP insurance?

[ Edited ]

Thanks for all the advice. I ended up canceling the gap insurance without having to contact the dealership again and I received a $750 credit toward my total account balance (canceled within 90 days of contract). My total balance after the credit and payments is around 10K. I believe my car is worth 8K based on what I've read on cars.com and Edmunds. I just didn't see the point in having it after I had gotten it. It just seemed like a waste. I do appreciate the replies!!

 

In addition to having the GAP...I did believe I would be upside down on my loan but after I got the loan and began making payments, checking my vehicles value...I realized I would be fine. I'm currently looking at auto loan coverage offered by my insurance company for HALF the cost of GAP insurance. I put $1k down on a 12k loan. Again, its a 2011 Hyundai Accent :smileyhappy:

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Valued Contributor
Dustink
Posts: 2,980
Registered: ‎10-02-2012
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Re: Should I keep GAP insurance?


maiden_girl wrote:

Thanks for all the advice. I ended up canceling the gap insurance without having to contact the dealership again and I received a $750 credit toward my total account balance (canceled within 90 days of contract). My total balance after the credit and payments is around 10K. I believe my car is worth 8K based on what I've read on cars.com and Edmunds. I just didn't see the point in having it after I had gotten it. It just seemed like a waste. I do appreciate the replies!!

 

In addition to having the GAP...I did believe I would be upside down on my loan but after I got the loan and began making payments, checking my vehicles value...I realized I would be fine. I'm currently looking at auto loan coverage offered by my insurance company for HALF the cost of GAP insurance. I put $1k down on a 12k loan. Again, its a 2011 Hyundai Accent :smileyhappy:


I think canceling the GAP was the right move, because it was priced too high. Though, I feel you should find some sort of coverage if you are only going to be making minimum payments. If you are going to get that loan paid down fast, then no need for any GAP coverage.

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maiden_girl
Posts: 2,102
Registered: ‎12-29-2011
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Re: Should I keep GAP insurance?

Right now I'm paying the bare minimum. I hope by the end of the year, I can start contributing more to my loan. I'm hoping to start contributing $300 a month instead of just $220. Gotta pay off my credit cards first tho!!!

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maike9
Posts: 1
Registered: ‎05-01-2013
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Re: Should I keep GAP insurance?

[ Edited ]

I would keep it.  I opted not to purchase GAP insurance when I bought my sport bike.  I wrecked it and had to pay $1500 out of pocked.   Funny thing is I work for a GAP Insurance provider too.

 

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