gap coverage a rip off or legit?

[uhuru]

i faced the same problem on a new car I bought - financed it 100%. I posted about it at the time because I wanted gap coverage.

My insurance was with State Farm and they don't offer it any longer. I found that I could have got it through Penfed for $350 even though I financed it through another bank.

[Miller88]

Your insurance may have it too ...

The insurance I had when I got the focus had gap coverage by default if you mention the vehicle is financed. It didn't change rates, oddly enough, just the insurance company included it for "free" (assuming to get more customers).

I did 35% of the car's value on a downpayment so I was never upside down.

[uhuru]

Originally Posted by uhuru

i faced the same problem on a new car I bought - financed it 100%. I posted about it at the time because I wanted gap coverage.

My insurance was with State Farm and they don't offer it any longer. I found that I could have got it through Penfed for $350 even though I financed it through another bank.

Correction: State Farm does provide it if you financed the car through their bank but they will not provide gap coverage if it is from some other bank.

[ferretkona]

I bought the GAP with my truck, Allstate told me I had wasted money.
Allstate only charged me a flat $50 for GP on my wife's truck.

When my van was totaled in 1998 did not have or know of GAP insurance. I had to pay the lender $2000 as the insurance only paid blue book value, not financed loan value.

[gtc08]

canceled it. thanks guys.

[Fargobound]

If you're being offered GAP chances are your already got ripped off

[orangecat1]

Originally Posted by uhuru

i faced the same problem on a new car I bought - financed it 100%. I posted about it at the time because I wanted gap coverage.

My insurance was with State Farm and they don't offer it any longer. I found that I could have got it through Penfed for $350 even though I financed it through another bank.

Penfed's gap coverage is actually gap + 1000. In my case I had a wreck, used the gap coverage, and got the additional $1000 to put down on the next car. I bought the gap again, of course. Another car I bought has gap also, even though it was bought used. I have had the car's value checked and the gap coverage would be necessary, if the car were wrecked. I owe about $7k, and the car has 72k miles, the car is worth about 6k.

If it were not for the +1000, I would agree do not buy gap for used. But, since the +1000 exists, I say buy it every time.

They still make plenty of money. Most people are not going to have a wreck that totals their car.