Who should I purchase gap coverage from?

[JMCB]

So I am purchasing a used truck tomorrow. I'm with Liberty Mutual and they can only provide Gap coverage on new vehicles. So Im stuck with going with the dealer unless someone can recommend a company to buy it directly from? At $50,000 purchase price, financed at 6 years, I could possibly be upside down at some point. So I want to make sure I'm covered. Also, what should I expect to pay if I get it from the dealer?

[Gmood1]

I'd go through a CU such as PenFed. Their gap insurance is much better and cheaper than what dealerships offer.

[JMCB]

Ya, that's what I was thinking. I checked on the DCU and NFCU website but you have to finance through them. I'm going through dealer financing because the credit unions wouldn't finance that much with my $100k+ student loans. So I had to go through a typical bank.

[pipeguy]

IMO Gap insurance is not worth buying - I've been buying cars/trucks/suv's for 40+ years, never bought it, never needed it. However, I know that was not your question.

First place I'd check is through my insurance company, especially since they are replacing a totaled vehicle anyway and at a certain point when you are not upside down you can cancel it.

Do NOT buy it through a dealer - highest price of any choice - big profit item since they can price it anyway they want. I'd also check with my insurance company, some offer "replacement value" coverage - at least that's what the ads on TV promote. 

Edit/Add: https://www.libertymutual.com/auto/car-insurance-coverage/new-car-replacement-insurance  (GAP info) 

[JMCB]

Ya, that wont work. Better/new car replacement wont work for what I am wanting. When the loan is 120% of value, you need gap coverage. This happens when you have custom options done to vehicles. Example, I'm having new front and rear offroad bumpers, front offroad fenders, offroad bedsides, hood, grille, lift kit, wheels, tires, and exhaust system. Insurance company only covers a percentage of custom work, not the price paid. So, offering me a truck one year newer is useless to me. And if I pay for those things upfront or put a big payment down to cover the vehicle, if I were to have an accident, I will not recover my money in the vehicle. So the smartest solution for anyone is to finance the whole amount and then cover yourself with gap coverage. That way if you were to wreck the vehicle or get hit by a person that is uninsured, it will cover the full cost of the truck and all the custom work done to it. If not the insurance company will kill you on "depreciation" on parts and labor. I have found multiple online companies that offer gap, I just wasn't for sure who to go with. Didn't know if anyone had experience with any. Sometimes its good to go with the dealer to drive off the lot and then cancel and get a prorated check and purchase from someone else.

[kats_rebuild]

I'm no expert, but I thought gap insurance didn't cover additional tihngs you had done to the car. It is more there to ensure that you don't owe negative equity on a car note if you total the car.

[StartingOver10]

^^^kats_rebuild is right.  GAP insurance won't cover the OP (or anyone else) for the custom items on the vehicle.

See this link:  http://www.carinsurance.com/gap-insurance.aspx

OP, if you have custom items there is special insurance you need to get to cover those items - neither your regular vehicle insurance nor GAP will cover those items. GL.

[JMCB]

Gap will cover it as long as you didn't install the products after you financed it. You guys didn't read my post or you didn't read your own article. "Equipment added to the car by the buyer". I'm not adding it. Thats what I was trying to explain. People that add this stuff after the fact, usually get screwed by their insurance when an accident occurs. They never fully recover the money they have put into the vehicle. But if you pick out a vehicle you want, figure out what custom work you want done to the vehicle, find a custom auto shop or let the dealer find one, they will customize the truck, it then will also be warrantied by the dealer, and included in the financing. Then gap coverage is sold according to the vehicles value. Which at that point, the MSRP has been adjusted on the vehicle. That's why you don't put any money down and don't pay for any parts or labor. Just get one big payment. Then the gap will cover up to 120% of the vehicle including dealer installed parts. Your not out any money except payments made on the vehicle. And yes, you can purchase extra coverage to cover those components. But gap will cover it, it has covered me before on an accident from a drunk driver that hit me. But today, I purchased my truck and I went with the dealers gap. $399. I could have saved $100 by purchasing online. But I'm guaranteed on the gap paperwork that they covered all the extra work. The truck was $45,000 and I added $15,000 in extras. The gap paperwork says original price of vehicle, $60,000. And says it will cover "max" 20% over what insurance companies pays out. Like I said, I could have saved $100 but I had to send in all the paperwork and wait for approval. Worth $100 for the dealer to guarantee it.