Can I skip out on GAP insurance?

[winks79]

1 hour ago, 2020AT4 said:

Yep, but how often do you total a new vehicle? GAP only pays if it gets totaled.

I agree, as I have never had it, nor will I need it, but all it takes is that one time and it pays for itself. As I stated earlier, it depends upon the situation, no equity in said vehicle, it is a smart move IMO. My future son-in-law just totaled out his brand new vehicle Monday. He had GAP coverage, if he had not had it, not only is he out a vehicle, but he would have to pay off the 3k difference in what he owed verses what they gave him. It does not take a big wreck to total one out today. Air bags, and all of the parts on vehicles today are expensive, along with hourly rates for body shops and you can easily reach the 75-80 percent threshold quick. Not to mention the depreciation factor a new vehicle goes through the first 2 years. 

[Mikedfw]

I agree, as I have never had it, nor will I need it, but all it takes is that one time and it pays for itself. As I stated earlier, it depends upon the situation, no equity in said vehicle, it is a smart move IMO. My future son-in-law just totaled out his brand new vehicle Monday. He had GAP coverage, if he had not had it, not only is he out a vehicle, but he would have to pay off the 3k difference in what he owed verses what they gave him. It does not take a big wreck to total one out today. Air bags, and all of the parts on vehicles today are expensive, along with hourly rates for body shops and you can easily reach the 75-80 percent threshold quick. Not to mention the depreciation factor a new vehicle goes through the first 2 years. 

You brought up a good point with the airbags and stuff. People don't realize how expensive it is just to fix one, let alone a dozen or so that deploy in a bad wreck.

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[Grumpy Bear]

 

[TNTSierra]

I have always bought GAP insurance, the most I have ever paid is $950 through the dealership. That is a bargain compared to the thousands you would spend if you are upside down on a truck, or even if you weren't. As fast as vehicles depreciate, you never know,  it's money well spent in my point of view. And if "someone" is worried about $950, then they probably shouldn't be buying the vehicle in the first place. It changes yours payment by maybe $5 to $6.  

[gearheadesw]

I had a brand new truck get totaled 9 days after purchase, 1100 miles, crappy down payment on that truck, GAP saved my ass. Fast forward a couple of decades, present truck, put a paid off truck as down payment on a heavily discounted 2500hd, GAP wasn't even offer, as the value of the truck was way more then the loan.

Edited August 13, 2020 by gearheadesw