Gap Insurance: where do i buy it online?

[ironk]

I heard its cheaper to get gap insurance for your car online. Any recommendations as to where to get it online? I found a few on google, but i dunno if they are legit or not.

Thanks.

 

[EvilPaper]

Before you purchase a separate GAP policy, see if your regular car insurance company offers this protection. It may be cheaper.

 

[Bryophyte]

Get it added to your current auto insurance policy. It's really cheap.

 

[nater]

what is gap insurance

 

[iwearnosox]

Originally posted by: nater
what is gap insurance

It's like banana republic insurance, but it's somewhat cheaper in price and quality.

 

[EvilPaper]

When you finance a car, the value of your car usually goes down faster than your loan balance. If your car is ever declared a total loss, your insurance company will pay only the value of the car. If you owe more than the value of the car, you are stuck paying a loan for the remaining balance - and have no car. GAP Insurance solves that problem by paying the difference between the amounts.

 

[Bryophyte]

Gap insurance is what you need when what you owe on a car loan exceeds the current value of the car. If you get in a wreck and total your car, your insurance company will only give you the current value unless you have gap insurance. For instance, if you owe $20000 to a bank for your car, and the current KBB value for your car is $16000, then you'd be $4000 short in the event of a totalled car. You are responsible for it, not the insurance company.

 

[Vic]

Having negative equity in a vehicle only happens if: (1) you buy a rapidly depreciating car, (2) you pay too much for the car, (3) you don't put anything down, (4) the term of your finance contract is too long, or (5) all of the above.
All of those circumstances are controllable, and instead of buying gap insurance, you should make sure that you buy a good car that will hold its value relatively well, that you negotiate a good price for the car, that you consider making at least a small down payment (especially for state sales taxes, if that applies), and that you never finance longer than 60 months.
Most importantly, don't buy more car than you can afford. It would be better if you had a savings account to cover the neg-equity gap in the event your car is a total loss. Better yet, try to keep from having negative equity in the first place. It can be done.

 

[Bryophyte]

Originally posted by: Vic
Having negative equity in a vehicle only happens if: (1) you buy a rapidly depreciating car, (2) you pay too much for the car, (3) you don't put anything down, (4) the term of your finance contract is too long, or (5) all of the above.
All of those circumstances are controllable, and instead of buying gap insurance, you should make sure that you buy a good car that will hold its value relatively well, that you negotiate a good price for the car, that you consider making at least a small down payment (especially for state sales taxes, if that applies), and that you never finance longer than 60 months.
Most importantly, don't buy more car than you can afford. It would be better if you had a savings account to cover the neg-equity gap in the event your car is a total loss. Better yet, try to keep from having negative equity in the first place. It can be done.

Awww, that's no fun

 

[RossMAN]

Originally posted by: nater
what is gap insurance

Recommended! Should the car be totaled or stolen during the lease term, the lease becomes an early termination and the charges for terminating a lease early can cost you thousands of dollars. In the event of total loss, most insurance policies will pay only the market value of the vehicle, so you may find yourself without a vehicle plus will have to pay a lot of money to the leasing company for terminating the lease early. Gap insurance will cover the difference between the amount you owe in your contract and the market value of the vehicle. Check with your current insurance agent to see if they can offer you a better deal on this type of policy.

ironk - Have you asked your current auto insurance provider for a gap insurance quote?

Mine costs an extra $5/mo which is worth every penny IMHO. If my car loan payoff is $15,000 but it's valued at only $12,500 I have to pay the difference of $2,500

With gap insurance they payoff the entire car loan payoff balance regardless of it's value

 

[ironk]

With gap insurance they payoff the entire car loan payoff balance regardless of it's value

They pay the difference between the original value and the market value, not the remaining loan balance...right?

 

[DaveJ]

Anyone have experience with Allstate and gap insurance? My parents bought a new car a few weeks ago, and when they called their agent to inquire about gap, he said it wasn't provided through Allstate, but through the lender (Hyundai Credit in their case). They ended up buying gap through the dealer instead, it cost them a few bucks a month extra IIRC.

Dave

 

[RossMAN]

Originally posted by: ironk

With gap insurance they payoff the entire car loan payoff balance regardless of it's value

They pay the difference between the original value and the market value, not the remaining loan balance...right?

It's my understanding with gap insurance they payoff the "gap" between the car loan balance and value. So yes they payoff your entire loan balance.

 

[CRXican]

Guranteed Auto Protection

 

[ironk]

well, my insurance provider (Commerce Insurance, MA) doesn't provide gap insurance. So, back to the topic: need a place online to buy it.