Can I skip out on GAP insurance?

Philipgonzales3 · August 10, 2020

13 minutes ago, Mikedfw said:

I used to be an insurance adjuster and routinely saw people without gap be horribly underwater after an accident. I always get it or the equivalent. You can often get it from your own insurance so I'd check that, but if you can't, i would say absolutely get it. Its expensive, but way less than what you'd lose without it.

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My insurance provider is GEICO and it looks like they don't offer it. Can I have insurance for auto and one for GAP? The reason is I don't want to switch insurance because GEICO also has Mechanical Breakdown Insurance for cheaper than extended warranty from the dealer. I wish I could know now if I would be upside down or not. That's why I posted the numbers. I figured someone would be able to tell me. I drive 12K miles or less a year. Don't want to shell out if I won't be upside down. Or if it won't be by more than a few K that I could just pay if that were to happen.

Philipgonzales3 · August 10, 2020

4 minutes ago, JimCost2014 said:

What are the values of a 19, close enough for a guideline.

You are probably right in the range where it makes sense, if you do buy a plan, make sure you can cancel it if you do not need (above water on the loan) it any more.

When I got into my 18, financed $33,000.00, so it was a moot point for me, but I think you are real close to it being a push.

Well I had a 2019, drove it for a 14 months and 12K miles and got paid pretty much the same amount I originally financed it for. Financed at 41K and change, received an offer for $40, 250. My car depreciated less than $1000 in a year and I had 7K equity in it. Lol doubt insurance would have valued it like givemethevin did though lol. So not a good example I suppose, some strange times we are living in.

Dani2005 · August 10, 2020

Have you asked your bank? If you are financing through them, try giving them a call. They could give you a ball park on value to depreciation. Doesn't hurt to try. I got my GAP coverage through my credit union.

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Philipgonzales3 · August 10, 2020

2 minutes ago, Dani2005 said:

Have you asked your bank? If you are financing through them, try giving them a call. They could give you a ball park on value to depreciation. Doesn't hurt to try. I got my GAP coverage through my credit union.

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Thanks for the info. So can I buy gap from my credit union if they offer it even if my truck is financed with someone else? Sounds like it's definitely worth a shot.

Dani2005 · August 10, 2020

Thanks for the info. So can I buy gap from my credit union if they offer it even if my truck is financed with someone else? Sounds like it's definitely worth a shot.

Well, I also financed my truck through my credit union, so I am not sure about your situation. Whoever the finance is through should offer you GAP. Sucks Gieco doesn't offer it :/

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JimCost2014 · August 10, 2020

13 minutes ago, Philipgonzales3 said:

Well I had a 2019, drove it for a 14 months and 12K miles and got paid pretty much the same amount I originally financed it for. Financed at 41K and change, received an offer for $40, 250. My car depreciated less than $1000 in a year and I had 7K equity in it. Lol doubt insurance would have valued it like givemethevin did though lol. So not a good example I suppose, some strange times we are living in.

At this point, get it for the best deal you can, monitor the value of the truck, then if you can cancel, take the money (refund) and apply it towards the loan.

tbarn · August 10, 2020

Wow. Have bought many new cars/trucks and have never heard of or been offered gap insurance except the one car I leased. Sounds like insurance for insurance to me. No thanks.

Philipgonzales3 · August 10, 2020

1 minute ago, tbarn said:

Wow. Have bought many new cars/trucks and have never heard of or been offered gap insurance except the one car I leased. Sounds like insurance for insurance to me. No thanks.

You from the US? Usually dealers pressure you into buying GAP insurance at the end of every deal.

tbarn · August 10, 2020

USA. Maybe it's a regional thing. Or big dealer thing. Worked in dealerships for 36 years (tech) an had many discussions with salesmen and finance guys. Gap insurance never came up in a discussion of a "purchase". Do what makes you comfortable though.

Edited August 10, 2020 by tbarn

Colossus · August 10, 2020

4 hours ago, Philipgonzales3 said:

2020 RST 6.2L 10 Speed, Z71, All Star edition, Leather, sunroof, safety I, Convenience I and II, Advanced Trailering, Chev-tec bedliner.

MSRP: $58,105

Invoice: $54,401

Sale Price: $48,950

Down Payment: $4500

Amount financed: $44460

Term: 75 Months

Payment: $675

APR: 3.89%

Not sure what depreciation is usually like. I know it's usually a ton. But figured since I got it below invoice and put some money down, I wouldn't be very upside down if at all. Figured it may be worth the risk?

Bet the sunroof starts leaking right after you are out of warranty otherwise a nice rig.

steve841 · August 10, 2020

Check out Progressive for your insurance.

They offer a "Loan Payoff" option for $5 per 6 months.

I jumped on it.

Mikedfw · August 10, 2020

Thanks for the info. So can I buy gap from my credit union if they offer it even if my truck is financed with someone else? Sounds like it's definitely worth a shot.

You can buy gap with anyone that offers it. If you're in an accident where the vehicle is totaled, what would happen is your primary insurance would cover whatever the vehicle is worth at that time, then you would file with your gap provider and they basically pay off the remaining amount. Doesn't matter if it is the same provider or not, they are separate coverages.

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Sjordan · August 10, 2020

At 75 month term you aren't paying that principal down very fast. GAP insurance is like any other insurance in my eyes. I would rather have it and not need it than need it and not have it if I will be riding the line of being upside down on the loan for a period of time. I don't have it on my truck (had enough down on a short loan), but my last vehicle I had it through state farm.

jwhjr · August 10, 2020

I've just always put enough down and paid extra each month to never be upside down to start. If I finance a vehicle, I work to pay that loan off as fast as possible.

Grumpy Bear · August 10, 2020

Less than 5% of all new vehicles are totaled within the first year. First year depreciation averaged 20% in that same year. Vehicles are totaled when damage exceeds 65-70% of it's ACV or actual cash value.

90% of all motorcycle fatalities happen in the first year on the road. I've been riding since I was 8 years old so I will gamble.

If you can't afford to burn in your barbeque 20% of the MSRP you can't afford a new truck. IMHO. People burn money in a hundred different ways. Gambling is a huge one. Lotto tickets? Many have some slack in the budget, the question is how much. For me that number has been near zero most of my life so only two new vehicles with four wheels ever in nearly seven decades.

Trucks I looked at were around $75 K the first time we looked. I took 20% of that and bought a two year old loaded LaCrosse cash that had under 35K miles on it and remained patient. Second time I looked I found Pepper. A 30 K truck a year old with a thousand miles on her 'mint' for under $19 K and got more for my trade than I paid for it. IOW I bought a new truck with a full warranty for less than auction price and made enough cash on the deal to pay the first toys for her.

Yea, yea, I know....but I REALLY want this......and I can't afford it. Then Gap it.