GAP Insurance

[iCoop]

It might seem like small potatoes but you're being charged interest on that original $695 fee which makes it way more costly over the life of the loan. Unless you got a 0% loan in which case it will be exactly $695 lol.

[jsucool76]

Haha. It's @2.9%.

But I also have Geico for my auto insurance, who doesn't offer loss protection/gap.

[nycplayboy78]

USAA has a program called Total Loss Protection which they sell in place of GAP insurance. Directly from USAA website under the Auto Insurance section:

Total Loss Protection

When a vehicle is totaled in an accident or stolen and not recovered, USAA's Total Loss Protection (TLP) covers the difference between what your insurance company pays and your outstanding loan balance.

We'll pay your insurance deductible up to $1,000.

Consider adding this coverage when you apply for your auto loan as a way of adding peace of mind.See note 3

 

3 Total Loss Protection and USAA Debt Protection are optional products. Buying or not buying either or both products will have no effect on any credit application or terms of credit with USAA. If you elect to purchase either of these products, you will receive the contract for the product before any fee is billed. The contract for the product contains additional information, including the terms, conditions, eligibility requirements and exclusions that could prevent you from receiving benefits. Please read the contract carefully for a full explanation of the product.

[Anonymous]

I got GAP insurance through Allstate, who also carries the insurance to my car I got it covered before I bought the car so that way the dealerhship just chucked the idea.
Unless they plan on beating $12 for 6 months. LOL 

[Anonymous]

---

@Anonymous wrote:

Any suggestions on where to get GAP?   We have USAA for insurance (Car is not financed through there) and I can't find anything on their website that shows they sell it.  

---

I purchased my GAP insurance from DCU for $295 last year. The only drawback I see with DCU GAP insrance is that if you cancel after 60 day, you don't get refunded for the unused portion. Neverhteless, the cost is much more competitive than the one offered by most dealerships at a high markup.

My auto insurer does not offer GAP insurance so I went with DCU. Naturally you only really need GAP insurance during the period of of time when you owe more than your vehicle is worth. Once you build equity on your car then there's no real need for GAP insurance.

Dealerships often sell you GAP insurance for the entire duration of your loan, as if you were going to be upside down on your loan until the very last payment you make. Two dealerships put up a fight when I cancelled my GAP insurance and requested a refund. I threatened them with lawsuits and I got my refund check 10 days later

[ways2go]

if You can use Navy Federal for a loan.  Their GAP is $199. Definitely worth it at that price.

[Slim1Der]

In California, GAP has to be purchased and on your sales contract at the time that you purchase the vehicle. Our vender is JMNA, we've been using them for 20 years. Our retail price is $750 and it is cancellable and refundable(prorated).

[Anonymous]

---

@Slim1Der wrote:

In California, GAP has to be purchased and on your sales contract at the time that you purchase the vehicle. Our vender is JMNA, we've been using them for 20 years. Our retail price is $750 and it is cancellable and refundable(prorated).

---

Ah. Good old Southeast Toyota / JM Family enterprises / Fidelity Warranty.. Decent product, but way, way overpriced..

[Appleman]

I use USAA for my insurance needs. For my family they have always been very easy to deal with regarding claims.

If you finance through USAA Bank they will sell you the total loss protection (years ago this was included) if you want it when you are closing the loan.

If after you close the loan you want a GAP type coverage they have an insurance product available that will pay 20% above the payout.

From the USAA website "Car Replacement Assistance If your vehicle is declared a total loss, we'll pay you an additional 20%."

Monthly premiums run $2.21 to $6.71 per month per vehicle for my situation.

If my car is valued at $25,000 and it is totaled, USAA will pay me an extra $5,000. My yearly cost on three newer vehicles runs $134 yearly. As the vehicles age I will ahve to see if the cost remains worth it to me.  

[cem13]

---

@ways2go wrote:

if You can use Navy Federal for a loan.  Their GAP is $199. Definitely worth it at that price.

---

I did as well.  This is their standard price for all vehicles.  So the higher the value, the more economical it is.  It adds about $5 per month to the payment and spread over 4 years will only cost a total of about $10.