Gap insurance frustration!

Discussion in 'The Green Room' started by oldfella1962, Aug 14, 2018.

  1. oldfella1962

    oldfella1962 light & lethal

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    Okay, I am trying to help my son get "gap insurance" on his jeep. He is currently insured with USAA who do offer "total vehicle replacement" (which he has already through USAA) but that is not the same as gap insurance. :nono: For the uninitiated, gap insurance covers the difference between what the vehicle is worth, and what is still owed if the vehicle is financed. And when my son got into an accident a few months back in his KIA he found out that it does not take much damage for a vehicle to be a "total loss" these days. :brood: Yes he did have the gap insurance at the time - he totally understands the need for it.

    Anyway I'm finding out that many auto insurance companies only offer gap insurance as an "add-on" to an existing typical auto insurance policy. In other words if you have that company as your primary auto insurance company (comprehensive, collision, uninsured motorist, etc.etc. etc.) they can also add the gap insurance.
    But nobody so far sells a "stand alone" gap insurance policy!

    So if anyone here on wordforge has any advice please help me out - thanks!
  2. Shirogayne

    Shirogayne Trolling No Jutsu Formerly Important

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    BMW has gap waiver insurance included in the price of every lease, which is a great plan considering BMW owners do not understand how indicators work. :|

    But, yeah. What a crock of shit.
  3. steve2^4

    steve2^4 Aged Meat

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    Ok, what's the difference between "gap" insurance and "total loss insurance"? They seem to be the same thing:

    When your vehicle is totaled in an accident or stolen and not recovered, your insurance settlement is not based on the outstanding loan balance, but on your insurance company's determined value of the vehicle. So if your vehicle is declared a total loss by your insurance company, the insurance amount you received could be less than what you owe on the vehicle.

    USAA Total Loss ProtectionSee noteSM (TLP) covers that difference, including up to $1,000 of your insurance deductible (subject to any exceptions and limits in the TLP agreement).

    TLP is a valuable alternative to GAP insurance commonly offered at dealerships and is often a fraction of the price.
    Other than the marketing, the coverage is the same (probably better) and the cost is less. Tell your son he's covered if this is what he has. USAA link

    And for the uninitiated, the finance guy at any car dealer will attempt to sell you gap insurance along with extended warranties, and too high interest rates. This is where the real money is made. Don't fall prey to the finance guy.
  4. oldfella1962

    oldfella1962 light & lethal

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    Yes I know dealers love to push gap insurance - but you can get gap insurance from actual insurance companies too. And the warranties are generally redundant & overpriced. Yes my son has TLP but does that cover the amount of the unpaid loan? I'll read it again, maybe I misunderstood what it said.
  5. Dinner

    Dinner 2012 & 2014 Master Prognosticator

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    You do not need gap insurance and if for some reason you really do, you don't, just get it from your regular insurance company.
  6. oldfella1962

    oldfella1962 light & lethal

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    Not all insurance companies sell gap insurance. I thought I covered that in the beginning. The companies that do sell it only offer it as additional insurance to an existing policy. In other words if your car is insured by Acme Auto Insurance with a typical policy (comprehensive, collision, uninsured driver, etc.etc) you can also purchase gap insurance if you owe much more than the car is actually worth in case it's a total loss. Newsflash these days anything above a slight fender-bender will total your car in most cases.
  7. steve2^4

    steve2^4 Aged Meat

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    Just don't fall prey to what dealers sell. We bought a VW last weekend. Dealer wanted $1048 for gap insurance. We declined. Through a reputable insurance company this is a couple hundred over the life of the loan.

    We also declined:
    paint protection
    fabric protection
    tinted windows
    extended warranty
    maintenance agreement

    This list went on for a page. The real money is made in the finance guy's office.
    • Agree Agree x 1
  8. oldfella1962

    oldfella1962 light & lethal

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    I get that! Never buy extra services from a dealer - that's a given. But try to find a reputable auto insurance company that sells gap insurance as a "stand alone" product - it's tough.