Gap insurance?

[roastbeef]

probably doesn't make sense on an older used car.

[MD707]

Do you not have RTI (Return to Invoice) GAP in the US?

If my car is stolen or totalled, I get what I paid for it back. Not what I owe on it. For $300 over three years...I don't understand why someone wouldn't buy it. Mind you, in the UK residuals / final payments are always way, way optimistic for the market. And never buy it from the dealer, who will charge 3x.

Originally Posted by todd92

Insurance is NEVER a good deal.

Until something happens. Enjoy that.

[GenXer]

I'm so up side down on my loan that I had no choice but to have GAP insurance. But I've heard and chat with friends who were hosed by their insurance company who only reimbursed market value for his car and he ended up owing $5K after his car was totaled. He had to sue his own insurance company. It took a long time so he already defaulted on his loan, not being able to work after an injury and having to pay for part of his medical bill. He finally won and got all of his money back but after getting his credit nuked.

Some financial institution even offer GAP insurance for very little cost. I had it on my $45K truck for only $250 and when I sold it before the loan was paid off, I got $140 back pro-rated. So I don't think it's a bad deal at all.

Not having to argue or sue your own insurance company is even better.

[dreamingat30fps]

I thought most leases had it built in. I buy most of my cars used so I don't see much point in it. Out of all the cars I've owned only one has ever been totaled and it happened to be one of only two I've bought new. My 335i and honestly I don't remember the exact numbers, but I was pretty happy with the insurance payout. It was definitely more than I owed on it although I might have paid a little more every month.

Anyways I never get it on my used cars. If buying new I might consider it. Definitely not through the dealer though. I remember them trying to sell one to family for like $1000, called their credit union and they would do the whole thing for like $200.

[chassis]

We had a very old, very high mileage Toyota RAV4 totaled by insurance. The compensation was more than fair.

Gap insurance is something that one pays to mitigate an unlikely event. This is the very nature of insurance. It is not in the financial best interest of most people who buy gap insurance.

[Silverlining_m2]

I've had gap insurance on my last 3 cars. I think it was around $500 for each. I used it on one of them, when I totalled my jetta. Worth it. Saved me $5k. Might have even been $7k. I don't remember outright because I didn't have to worry about it.

[LogicalApex]

When I purchased (financed) my car in October I turned down BMW Gap insurance. They wanted over $2K or $3K for it which I thought was comical. Especially since I was financing 70% of MSRP.

I also totaled a previous car a used 2013 MB within a few months of buying it 6 years ago and insurance paid more than I purchased the car for. As they pay private party values not trade in values on it.

That said, I did buy GAP on the loan through my Credit Union since they wanted $300 for it. I am sure it will be a waste of money, but $300 is a lot more reasonable to spend on insurance I'd likely never use (unless BMW depreciation is a lot harsher than MB) than over $2K.