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Gap Insurance

adm1exgadm1exg Member Posts: 2
in General
My mistake, I didnt look for Gap insurance in the
contract. Is it possible to negotiate or purchase
after the sale? Leasing with Nationsbank Leasing
arm.
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Comments

  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Adm1exg, I don't know Nationsbank's specific policy on this matter, but they may let you purchase gap insurance after you have signed your lease. I bet that gap insurance is a fairly profitable item for finance companies, because it is unlikely that your car will ever be totaled or stolen. If it makes you feel better to have it, and they are likely to make money on it, then I don't see why they wouldn't sell it to you. Give them a call and see what they say. Please come back and let us know what they told you. I'm curious.

    Your Host
  • adm1exgadm1exg Member Posts: 2
    Spoke to a rep at Oxford leasing(Now Nationsbank) and he said that all their leases have gap included as a zero cost item.I have his name but that may not matter two or three years from now if the car is stolen or totaled.I'm gonna try contacting my dealer if they can include a clause or something....has anyone else had any probs w/oxford in the past??
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    I leased a vehicle through Oxford several years ago. They had very good rates, but at the time gap insurance was not included in the basic lease agreement. It was an additional charge of a couple of dollars per month. I am not familiar with Oxford's current policy on gap insurance, it may have changed since then. I am currently leasing a vehicle through American Honda Finance Corporation and that gap insurance is included in my lease at no additional charge. Hopefully you will never have to take advantage of gap insurance. However, it is a good idea to make sure that you do have it, just in case you do run into some sort of major problem in the future. Better safe than sorry.

    Your Host
  • howeyhowey Member Posts: 2
    Chubb Insurance offers gap insurance on leased cars which are under you auto policy
  • ladykladyk Member Posts: 1
    I purchased a 1997 in 1998 and was told that I should have Gap Insurance. Is this insurance really needed on used or new car purchases.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Well, ladyk, you technically don't need gap insurance. Whether you should purchase it or not depends upon how risk averse you are, much like an extended warranty purchase decision. Gap insurance was included on the last two vehicles that I leased, but I don't think that I would have gotten it if I had to pay more than a few (very few) dollars extra per month.

    Your Host
  • n247zqn247zq Member Posts: 1
    Does anyone know if and where GAP insurance can be obtained after a lease - lease company says they can't do it.
  • johnharperjohnharper Member Posts: 1
    I was shopping around when getting my new car and
    the dealer wanted $550 for GAP Insurance. Knowing
    that somewhere on the web I could get it for
    cheaper. After searching for a couple weeks I came
    across a site that did it for $225!. I would
    recommend this site if you want to save
    considerable money on your GAP insurance. Their
    web site is www.gapcontracts.com.

    Thanks,

    John
  • diazodoktor2diazodoktor2 Member Posts: 23
    RE: JOHNHARPER

    All the leases that I have been involved in (Ford, GMC, Chase) have included the "gap" at NO additional charge. You are being HUSTLED big time. Don't go for it!! The dealer is ripping you off for additional profit. Tell him thanks, but no thanks ! How about your own insurance co? They shpuld be able to do a whole lot better than that if the leasing company you are dealing with really does not include it in the contract.
  • jdpearljdpearl Member Posts: 1
    Be careful of GAP protection, some states it is regulated like an insurance product and pricing is controlled by the individual states. Yes it is true that some manufacturers include gap in their leases. But the consumer is still paying for it in acquisition fees that are clearly stated on all these contracts. There is nothing for free in this world. Make your own decision consumer. GAP is designed for peace-of-mind. If you are rolling over negative equity from a trade-in, insurance settlement, or lease charges into a retail (finance contract) then you might want to consider GAP protection. Also when buying a used or a new car the difference between what you owe and what the payoff. There will always be a depreciation factor with most vehicles. Insurance is a risk and there must be a charge for it. That's the law
  • KCRamKCRam Member Posts: 3,516
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  • carless4carless4 Member Posts: 1
    My dealership tried to sell me Gap insurance for
    $450.00 dollars. I looked on the internet and
    found other companies that I can purchase from for
    much less. Why is the dealer selling it for so much
    more? The GAP coverage that I found online was the
    same but at a much lower price.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Carless4, actually a large percentage of leases already include GAP insurance. Which bank is your lease through and what vehicle are you leasing?

    Car_Man
    Smart Shoppers / FWI Co-Host
  • ae7327tae7327t Member Posts: 2
    Hello all,
    My fiancee and I just purchased a Dodge Neon
    2001 SE at 200 over invoice. In negotiations, I
    squished all of the major scams (extended
    warranties, credit insurance, etc.) but the dealer
    said we needed to have gap insurance at 450 or our
    APR would be going up from 9.3 to 9.7% and he said
    that Chrysler included GAP insurance. However, on
    the contract, I saw it as an extra charge??? We
    took it because it would raise our monthly payments
    with a higher financing rate...did we get screwed?
  • fronobulaxfronobulax Member Posts: 23
    It's not real clear what you were offered but it makes sense that the dealer would offer two rates, a lower rate if you buy GAP insurance.

    Given the choice between 1. A 9.3% loan and having to buy GAP insurance for $450 and 2. A 9.7% loan with not GAP insurance requr (9.7%), then you should take the higher rate loan. That is because the higher rate results in only about $150 more in payments. It is better to pay $150 over 5 years than $450 today.
  • ae7327tae7327t Member Posts: 2
    I am hearing from most of my friends around here that a 9.3% APR is way too high for purchasing a new car. It is probably our fault for not shopping around enough to get a good APR from another institution. We had the option of taking a 1500 dollar rebate or going with a lower financing rate over the five years. In the end, the lower monthly payments were with the rebate but overall, I think we should have probably got a lower APR because we will end up paying more over five years. Is this correct?
  • voicemailkingvoicemailking Member Posts: 83
    I may be wrong...but here in Florida i am told it is law that gap insurance is included with all leases...please correct me if i have been mis-informed as i do not want to pass bad information...Thanks!!
  • user04user04 Member Posts: 1
    If you 90% to 100% finance your vehicle purchase and live in an area where your auto may get totaled - GAP is the way to go, BUT check with your credit union for this and extended warranty policies for lower costs.
  • rea98drea98d Member Posts: 982
    With a lease, Gap insurance is a must, simply to protect yourself. However, I thought we were talking finance and loans, in which case I thought comprehensive coverage from allstate, state farm, et al, would be suffecient. Can someone straighten me out?
  • akanglakangl Member Posts: 3,282
    With most leases GAP insurance is included, but if we are talking about a vehicle loan, no, GAP insurance isn't included. As for regular insurance......full coverage being enough, sure it would be enough if you are not in a negative equity situation with your car....owe more than replacement value of your car. If you are upside down in your car......as most people who finance for 60 to 72 months are, GAP insurance is a great thing to have. I purchased a 2000 Subaru Impreza 2.5RS in February and financed $24,000 on a $20,000 car (I was very upside down in a 1994 S-10 Blazer), the finance manager insisted that I buy GAP insurance, I had never thought of it before, but figured it was a good idea. Anyway, I traded the car in on a Nissan Quest in June and again find myself very upside down, so I again added GAP insurance to the loan. I figure for $399 I can't go wrong. I have known too many people who have bought a new car and then totalled it and found themselves having to shell out $3000 to $5000 to pay off their loan after the insurance company has paid the replacement value of the car. Remember, the bank doesn't have to take whatever the insurance company pays and call it good.......you are responsible for the remainder of the loan and the bank will get its money one way or another. Also, the insurance company isn't responsible for paying the entire loan, they only pay replacement cost of the car or fair market value, not what the car cost new. So if you bought a brand new car and totalled it 6 months later, guess what.....you are going to get the value of a used car, not new and most new cars depreciate pretty hard when you drive them off the lot. GAP insurance is good protection.
  • 32ford32ford Member Posts: 1
    No matter where you live or what vehicle you are leasing DO NOT SIGN ANYTHING UNTIL YOU KNOW YOU HAVE GAP INSURANCE!!!! Notice that the operative word here is leasing. I am not a great believer in gap for purchasing(financing) a vehicle unless you are financing the whole vehicle price. In a lease you must have GAP, however, if you see an item called Lease acquisition fee, bank fee, or some other such terminology it probably covers GAP insurance. Normally this shows up on the back page of the lease agreement in very small print.
  • kinleykinley Member Posts: 854
    There is another kind of gap in Florida. Those little ole ladies in Palm Beach can play 15 bingo cards simultaneously, but can't punch a ballot?
  • guestguest Member Posts: 770
  • guestguest Member Posts: 770
  • guestguest Member Posts: 770
  • kinleykinley Member Posts: 854
    Usually it is only offered on lease transactions.
  • glenn54glenn54 Member Posts: 23
    When I asked for a quote from my insurance company (allstate) for a new car purchase, they suggested gap insurance added onto the policy incase the bluebook value doesn't cover the payoff amount in the event of it being totaled or stolen. Is there any truth to this?
  • md2002md2002 Member Posts: 142
    is a good thing to have since you never know when or where your vehicle will get totaled or stolen, and you are liable for the full balance due regarless of fault. GAP will cover any short fall in the payout from the insurance people.

    With that said, most lenders will either include GAP in the cost or you can purchase it. To be honest all of my loans always had it, but it usually runs about $85-100. Pretty cheap compared to paying out $5-10k if your new car is totaled.

    Good Luck.
  • rroyce10rroyce10 Member Posts: 9,332
    "Gap insurance".. is one of the least expensive forms of much needed Insurance that any one can buy....! The average consumer, is now trading vehicles (or attempting) about every 28 months... compared with approx 40 months, 5 short years ago.
    What gap insurance can and will do.. is this, cover are own mistakes. With all the special financing deals--no money down deals-- sign your your name, and drive away deals --and "most" consumers are doing just that..... After the first trade cycle.. and for sure the ..second..most people, owe $20,000 on $12,000 vehicles.... and for the more "successful people" they can owe $40,000 on $25,000 vehicles. It's common..! So if a accident occurs.... theft, and 100% totals etc,etc. You don't have to have, cardiac arrest battling your insurance company that you have been with for 20 yrs-- as they try to "give" us a check for 70 cents on the dollar!
    Most credit unions sell it ... whether or not you finance with them along with -Ins companies and a host of others on the net..... Just take your time... and shop!
    That's -CHEAP-insurance for a couple hundred bucks...! "MD2002"--- That's great advice! PS... most leases have it, "but" read the small print... especially- Fomoco - happy hunting!
  • glenn54glenn54 Member Posts: 23
    Is it cheaper to get gap insurance from your insurance company or thru you loan company?
  • glenn54glenn54 Member Posts: 23
    Didn't get any response to this a while back. Thought I'd ask again. I was wondering where would be the best direction to go to get GAP insurance for a new car purchase (Insurance co, dealer, loan co, etc.)
  • rroyce10rroyce10 Member Posts: 9,332
    Gap insurance...is like anything else, You shop it...like I might have mentioned before....some Credit unions/banks/insurance companies will sell the product ....whether you finance with them or not. My sister just financed a new Acura, and she financed through Acura/Honda...but , bought the Gap insurance through her Credit union and saved $127.00 over the dealers insurance.....so it was worth here time..... !
    Good luck....
  • kinleykinley Member Posts: 854
    Two years later I owe 30k on a 12k car and I just got fired, divorced, & convicted. But, with GAP coverage I can run it over a cliff and wipe out my debt. I can't burn it because I have already been convicted of arson. Where else can you get 18k for only a hundred bucks a year?
  • bretfrazbretfraz Member Posts: 2,021
    It ain't easy to make a car payment on the pay one gets from pressing license plates.

    If it were me, I'd ask one of my new friends in the pen to have it stolen and stripped. The money paid to the thief goes to your new friend. That way you get out of the car payment and don't have to worry about having to toss your friend's salad.
  • steverisitysteverisity Member Posts: 39
    kinley,
    Gap insurance seems wise for someone in your catagory, (not sure if you're for real)
    but I personally think insurance in most cases is a rip off.

    Is the price that people are reffering to per year, per 6 months, one time only???

    I was offered GAP insurance when buying a new MBZ SUV last year. It didn't sound like a good deal to me. It may have paid off if the car got wrecked or stolen in the first couple of years, but after that it's value greatly diminishes.
  • rroyce10rroyce10 Member Posts: 9,332
    If you pay cash for a vehicle....there is no need for Gap insurance. But unfortunatly, 93% of the buying public is going to finance the vehicle of choice with little or no money down..and most of the time, with $2,000 to $4,000 of negative equity from the trade...that's pretty much S O P ..

    So as this consumer travels down the highway and byways of this great land...if the vehicle is stolen, wrecked,flooded etc...the situation will arise - as it does in every city
    about 50 times a day...that this consumer will owe $20,000 on a $15,000 vehicle or for the more succesful consumer, they may owe $40,000 on a $25,000 vehicle..

    So I would think, for the extra $250 to $300 for the entire policy....That is very in-expensive insurance considering the percentage is at a all time high of 85% of drivers with negative equity in their vehicle...MB's or not..!
  • teresam2teresam2 Member Posts: 1
    I just purchased a new SUV and my dealer offered me a Gap Insurance policy for $550.00. I didn't know exactly what this kind of insurance was and told him that I would have to think about it. Since I am a heavy internet user I decided to do some online searching for Gap Insurance. To my surprise I found a online site that was offering the same coverage for only $199.00. Which I purchased immediately.
  • rroyce10rroyce10 Member Posts: 9,332
    .......Good for you...! There is many places to go to....Credit union's, Ins companies...internet sites.........and it is certainly worth the look...especially when you can save a couple of hundred bucks at least....

    The great part about it is, a whole lot of needed ins....for just a few dollars...Congrat's

    Terry.
  • kinleykinley Member Posts: 854
    Ask your company/agent if the coverage can be endorsed onto your own auto policy. Because the underwriting has already been done on you, the rate/premium will be the lowest when added to your own auto policy.
  • morgan58morgan58 Member Posts: 1
    My dealer offered me GAP insurance at the time of purchasing my new truck. I declined this insurance because of the high cost he was offering $525.00. After researching the internet I purchased from CarConsultant.net at a much much lower price and for the exact same coverage. I would recommend that anyone looking to purchase GAP insurance check this company out. Their customer service rep was very helpful and knowlegeable in making this a smooth transaction.
  • glenn54glenn54 Member Posts: 23
    I plan to finance 100% of my new car purchase loan. Should I be adding gap insurance to my insurance


    Edmunds.com Feature Article: Little-Known but Important Insurance Issues
  • sharonlpksharonlpk Member Posts: 37
    We weren't offered gap insurance on our recent purchase, even tho I saw it on the contract and asked what it was... I'm hoping because we got the vehicle at a great price (under invoice due to retired worker, then cash incentives/rebates totalling $5500 plus 3.9% financing) maybe we didn't really need to consider it.

    However, in reading these posts, I just don't understand why there is allowed to exist, in the auto dealer/auto insurance industries, such a large gap between purchase price and insurance pay-off price that it is prudent to consider that type of insurance...

    By the way, how does a person who is insured find out what a pay-off would be for a vehicle if there is the unfortunate circumstance of it being considered 'totalled'? I'm curious if this information is ever made available to the public :-)

    Sharon
  • badbuyerbadbuyer Member Posts: 2
    I have just leased a 2002 Jeep Grand Cherokee Ltd. Am in the process of search for GAP Insurance, and am finding very little on the subject other than "Gotta Have It"! Edmunds referral is CarConsultants.net, which is $100 less than the dealer offered. Anyone have other providers to suggest, or is there experience out there with CarConsultants.net?
  • kinleykinley Member Posts: 854
    Check with your agent.
  • lleroilleroi Member Posts: 112
    I purchased a GAP policy on line for$199.I don't have it handy,but I can look it up for you if needed.
  • force98force98 Member Posts: 81
    Every vehicle I have leased (GMAC, FMC, BMWFS) included gap insurance free with the lease contract. Did you check your contract?
  • badbuyerbadbuyer Member Posts: 2
  • hungrywhalehungrywhale Member Posts: 83
    Check your contract first. Most contracts include it in the lease contract. It protects the lessor, too.
  • paulsrpaulsr Member Posts: 2
    I found out the hard way about gap insurance .I was not offered or informed about gap insurance . and then i totaled my carl. Untill then i never heard of gap insurance. My insurance paid what the car was worth and i end up owing $4000.00 to the bank who also never informed me or offered me gap insurance ,. A VERY HARD LESSON LEARNED
  • phkckphkck Member Posts: 185
    Do you have to buy it when you buy the car?
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