Where to buy GAP insurance

noelmnoelm Member Posts: 2
edited August 2014 in General

I am about to take a delivery to Subaru Forester. My lender (local credit union) did not offer GAP insurance with the auto loan. I took a loan of $20000 and paying $8200 from my pocket. I do not want to pay $595 for GAP insurance from the dealership. What are my other options to buy GAP insurance?
(My auto insurance company, State Farm, offers GAP insurance only if I finance through them.)

A quick google search led me to https://gapdirect.com Edmunds has cited this company in their articles. What other options do I have?
Any caveats I should be aware of?

Thanks for all helpful answers.
P.S. - This is in NY.

(Until I get answers, I will be reading the old thread.)



  • Mr_ShiftrightMr_Shiftright Member Posts: 64,481

    I would get a quote from GapDirect, then take it to your dealer and ask him to match it or come darn close.

  • kyfdxkyfdx Moderator Posts: 233,607

    I don't think you need GAP insurance. If your loan balance is only 75% of the purchase price, there won't be anything for the insurance to cover. It only covers loan balances that exceed the insurance payoff.

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  • steverstever Guest Posts: 52,454
    edited August 2014

    You may want to get a quote for New Car Replacement coverage, but that would only kick in if the car is totalled. Chances are the insurance company would go to great lengths to keep from totaling your Subaru in that case.

  • Mr_ShiftrightMr_Shiftright Member Posts: 64,481

    Replacement coverage is expensive, too.

  • steverstever Guest Posts: 52,454

    Another reason to buy used eh?

  • Mr_ShiftrightMr_Shiftright Member Posts: 64,481

    Or to put a healthy down on the deal. But let's face it, it is a most unfortunate thing for the buyer or leasee to have a nearly new car totaled. One rarely comes out 'right' without gap insurance.

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