GAP Insurance

[Anonymous]

I have tried to Google this however all the articles tell you to add to your insurance - however,  our auto insurer does not offer it in good old Massachuetts .  I know the dealer will over charge  - NFCU and DCU only offer if you use their loan which I am not.

Anyone know where I can buy separately in MA but not at the crazy rate the dealer will charge? 

Thanks!

[Loquat]

I've never seen such protection offered outside the dealership, lender, or insurance company.  

[Anonymous]

You would be hard-pressed to find a third party that offer's GAP outside of a dealership as mentioned above. There are many insurance companies you can check with that offer GAP, but that would require you to switch insurance companies I suppose.

As crazy as this sound's I would recommend people buy GAP at the dealership, GAP is negotiable just like all thing's at dealerships, so negotiate a price you are willing to pay. Typically GAP sold by dealer's cover's your deductible in the event of a total loss, as well as up to 150% of clean NADA retail (in other words, you would have to be SEVERELY upside down for GAP to not cover the total difference.)

The main reason I recommend GAP from a dealer is I think it is a conflict of interest for a customer to purchase GAP on top of their existing full coverage insurance from their insurance provider. Let's say you get in an accident and the vehicle is border-line totalled, an insurance company may very well not total a vehicle that is unsafe and should have been totalled, simply because they have to pay a primary claim, and a seconary GAP claim, thus costing them lot's of money. Personally, if I am in that situation, I want my vehicle totalled if it is at that point, and would never want my insurance company to not total it because of having the pay two claims.

[Anonymous]

Thanks, Semo. You definitely gave me a perspective to consider. Other than some online only companies, I wasnt having any luck.

We have been happy with Metlife and as its autopay through DH's work, not a fan with redoing everything to save on this one item.

Thanks again - I appreciate your thoughts.

[Anonymous]

As an insurance adjuster that regularly totals cars, i can assure you, your financial situation on the car has no bearing on a total loss decision. It is simply the cost of repair vs cost to replace. Most states have thresholds (for example in va if damage exceeds 75% or more of the actual cash value it is a TL) only insurance companies that i know of that offer gap protection are those that have loan programs. Best to get it from the dealer and negotiate and you can also get money back from it if your car is totaled and you dont need the coverage

[dabrian]

You could also just more money down on the vehicle and avoid buying the dealers overpriced insurance.

[jgdev]

For anyone curious. I bought my car when I used to work for a Toyota dealership a few years back.

Being an employee I got all the extras at cost. 7 year/100K Bumper to Bumper Toyota warranty with $0 deductible was around $700-$750 and GAP was less than $200 if I remember correctly. There is always room to negotiate those as others have said. In my case glad I got the GAP since Toyota dropped Scion as a brand a few years ago and caused the value of my car to plummet. 

[Anonymous]

State Farm Auto loan has GAP included in the policy.  Reasonable rates too!