I had gap coverage on my vehicle. The car was stolen and it did still did not cover the Gap? Am I being scammed?
Total Comments: 13
Posted: Sat Dec 06, 2008 01:54 am Post Subject:
GAP as far as I know stays in affect until you (the policy holder) cancels it...on the other side of the coin I have seen some people that had GAP (paying the premium of course) when they didn't need it...(ie...vehicle ACV=10k, pay off =8K GAP in this instance is nothing but a waste of money.
Posted: Sat Dec 06, 2008 02:37 pm Post Subject: insurance
LORI.........you made that explanantion ( about 'GAP'..) pretty clear. At least that's ONE thing I can understand about insurance..LOL
Posted: Mon Dec 08, 2008 08:53 am Post Subject:
it is necessary for the first few years of a new car or how exactly does this work?
Firey, you definitely need gap insurance on a new vehicle, especially on one with the lien on it. Even for used cars, the dealer may require you to purchase gap insurance in order to ensure that he'll not be at loss if the car totals in an accident.
However, as lori has said many people actually pay unnecessarily on the gap coverage even when they don't need it. That is mainly because we often don't review our insurance needs. You may not need to maintain the gap coverage on the vehicle
*If you have repaid a considerable part of the loan
*If your car is sufficiently old to reduce its actual cash value
*If you don't owe on the vehicle more than what its worth
Posted: Sat Dec 06, 2008 01:54 am Post Subject:
GAP as far as I know stays in affect until you (the policy holder) cancels it...on the other side of the coin I have seen some people that had GAP (paying the premium of course) when they didn't need it...(ie...vehicle ACV=10k, pay off =8K GAP in this instance is nothing but a waste of money.
Posted: Sat Dec 06, 2008 02:37 pm Post Subject: insurance
LORI.........you made that explanantion ( about 'GAP'..) pretty clear. At least that's ONE thing I can understand about insurance..LOL
Posted: Mon Dec 08, 2008 08:53 am Post Subject:
it is necessary for the first few years of a new car or how exactly does this work?
Firey, you definitely need gap insurance on a new vehicle, especially on one with the lien on it. Even for used cars, the dealer may require you to purchase gap insurance in order to ensure that he'll not be at loss if the car totals in an accident.
However, as lori has said many people actually pay unnecessarily on the gap coverage even when they don't need it. That is mainly because we often don't review our insurance needs. You may not need to maintain the gap coverage on the vehicle
*If you have repaid a considerable part of the loan
*If your car is sufficiently old to reduce its actual cash value
*If you don't owe on the vehicle more than what its worth
Hope this helps.
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