GAP Insurance

[SciaticNervePain]

Hello Everyone,

Question, I should be getting my Mustang within a week or two. Is GAP insurance a must? If so, what is a reasonable price since I know dealers like to throw that in your face when you are signing paperwork. I will be financing my car and only have 6K to put down.

Thanks!

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[RJV15]

Depends who you get GAP insurance from, it will be through the financing company.
I just got pre-financed and payed $300 through Navy Federal, but when I financed my Civic through Honda Financial they charged $899. Quite the difference!

 

[SciaticNervePain]

Depends who you get GAP insurance from, it will be through the financing company.
I just got pre-financed and payed $300 through Navy Federal, but when I financed my Civic through Honda Financial they charged $899. Quite the difference!

Oh ok, I got pre-approved through my credit union so I will ask them tomorrow.

 

[mabcim]

Should need GAP insurance if your loan is more than the car is worth. Since you are putting down $6k, have to decide if it loses more than $6k when you drive it off the lot.

 

[2024S650]

I was very close to buying vehicle from an out of town dealer, I mentioned many times I needed GAP on the Buyers order before travelling. Well after working on price and trade for over a day they hit me with $1200 for GAP. Its $500 with my credit union but it just pisssed me off so bad I decided to buy elsewhere. I thought after the negotiations they knew that I was not going to be taken advantage of. Pure Greed. $6000 is really like $2500 down if you think about taxes and fees depending on where you live. Yes, I would recommend GAP.... With that in mind check with your Insurance company, literally almost every one offers GAP besides mine which is GEICO.

 

[krisk]

I’d recommend checking with your auto insurance company. Most offer guaranteed payoff coverage much cheaper than the finance companies.

 

[dfwford]

Hello Everyone,

Question, I should be getting my Mustang within a week or two. Is GAP insurance a must? If so, what is a reasonable price since I know dealers like to throw that in your face when you are signing paperwork. I will be financing my car and only have 6K to put down.

Thanks!

Absolutely!

The cost for this type of insurance is very inexpensive relative to your car's worth, and life does happen. The last thing you want is to be stuck with a car note for a vehicle you no longer drive/own.

You do have options though. You can purchase this from the dealer when picking up your car (usually in the ballpark of $500-$1000 lump sum), and there are some insurance companies (Progressive is a good one) that offers an optional Loan/Lease Payoff benefit with your auto policy. It may at best another $5-10/month to your monthly premium.

Speaking from personal experience, I am very thankful I had Progressive's Loan/Lease Payoff when I totaled my 2018 Mustang several years ago. I still owed $25K on it and they paid it off entirely.

The one caveat I will add is that loan/lease payoffs with insurance providers tend to have pretty hard limits with total reimbursement and (in all likelihood) you have to pay a deductible. Gap insurance purchased from the dealer usually has no limits or deductibles.

 

[Zig]

Absolutely!

The cost for this type of insurance is very inexpensive relative to your car's worth, and life does happen.

You do have options though. You can purchase thid from the dealer when picking up your car (usually in the ballpark of $500-$1000 lump sum), and there are some insurance companies (Progressive is a good one) that offers an optional Loan/Lease Payoff benefit with your auto policy. It may at best another $5-10/month to your monthly premium.

Speaking from personal experience, I am very thankful I had Progressive's Loan/Lease Payoff when I totaled my 2018 Mustang several years ago. I still owed $25K on it and they paid it off entirely.

The one caveat I will add is that loan/lease payoffs with insurance providers tend to have pretty hard limits with total reimbursement and (in all likelihood) you have to pay a deductible. Gap insurance purchased from the dealer usually has no limits or deductibles.

Some plans also allow you to cancel and receive a prorated refund and or credit toward purchase when trading in.

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