GAP Insurance 101

Car Buying 101's Lawrence Alexander breaks down the mystery behind Gap Insurance. Starting with what is Gap? Do you need GAP Insurance? Watch this episode to learn more about what GAP Insurance and if it's worth the cost.

My brother just bought a brand new 2019 civic, only had it for maybe 3 or 4 months... he was at work when someone plowed into his parked car, didnt have gap insurance..lost his car, and went about 12 grand in debt..worth getting if you have a new car, no doubt

[shoponline]

Definetely get it. You may not need it. But what if you do???? Better safe than sorry

[damightyadvisor]

Thank u! I have a 25 k total out situation. Very well articulated! Keep at it, ur needed!

[antoinealez]

Just brought a 2021 Camaro LT1. I wasn’t to sure how gap insurance worked but my mom told me a story about a friend who brought a new car an within the same week someone totaled it while it was parked. I didn’t want to end up like her friend so I got it just in case. Thank god nothing has happened but I sleep well at night knowing that I’m covered.

[chrisreed]

I know a young lady that thanks to GAP insurance, she now has an 850 Beacon score! She had GAP on all cars she every purchased..after a year, she was hit, car totaled..GAP paid off difference so car was paid off after a year..Next car..6 months in, hit again..car was a total loss..GAP kicked in..paid off..all those recent car pay offs really boosted her credit score! I highly suggest GAP if you know you will owe more than a car is worth which 9 times out of 10 most people do end up being upside down as they put very little down and finance negative equity which is a sin!

[Ae]

Hey quick question. What if you have gap insurance and motorcycle gets stolen but don’t have insurance?

[jnova]

What happens when you have Gap insurance but pay the vehicle off before the term? I was informed that you get a gap refund check, which I did but I don’t understand why the amount was so low that was returned. I originally asked for a payment of no more than $500 a month they asked me to add gap insurance I said ok this made my payment $740. But the gap insurance contract was $995 with a 75 month term. When I paid the car off it still had 57 months on it. The rate of that is around $13.777, I got a check for $759 refunded from Gap cancellation. My questions is should my refund check be more since my payment was so high?

[dannieros]

A few week ago in the early hours of the morning I was asleep and some kid lost control of his car and ran into the back of my car. My car was totaled. The first thing I thought is omg I hope I still had gap insurance when I refinanced and thank god I did

[WildlifePatrol]

Here is a good story for ya. I traded in my upside-down vehicle on another used vehicle. I also purchased GAP insurance and a $4K service contract. 5 days later I hit an elk and destroyed my new vehicle. No injuries. passenger airbags deployed and extensive frontend damage. I am with USAA. They initially told me that based on the damage I described to them that the vehicle might be a totaled loss. They picked up the vehicle and took it to COPART salvage yard to be inspected. It's going on 2 weeks since the accident. My question is if it's totaled how will all this play out since there's a lien holder and gap ins and added negative funds from the trade in. USAA also gives me a check valued at 20% of the vehicle value to help me get into another car. Something tells me I'm gonna get screwed somewhere in this whole deal. Or will this turn out to benefit me in the long run? Anyways sucks to be me.... Any advice or comments would be greatly appreciated. Thanks.

[seven]

Im putting 40k dwn on a 56k car i shouldnt get gap insurance right?

[jaymickey]

If I wreck the car which the car is insured full coverage, but my name isn't on the policy. But I did have gas insurance through my dealership. What is the outcome to that?

[timothyleebond]

Usually in most auto accidents the other parties insurance covers the tab provided they or you are not at fault is it the same regardless of gap insurance

[hexer]

Thai explained a lot thank you for that

[reighzhor]

Is there a maximum amount that GAP will cover? For example: owing more than twice the ACV of the totalled vehicle, would GAP cover it entirely, or would I be left with remaining balance?

[marianafranco]

Got my truck for 33, 000 but it’s actually worth 37, 000 do I need gap insurance??

[estkokz]

I bought gap through the car dealer. How do I apply that? Do I need to call them? My loan people? I’m in a bit of a fix. Any help you can give would be appreciated.

[seansmith-ersq]

I have question i have a 2002 ford f150 we have gap also and truck has 170, 000 miles on it will Insurance companies say thruck is at total loss from us hitting a deer

[drakosasori]

I got into an accident I got rear ended and had gap insurance, are they gonna cover all the damages and repairs? No replacement car

[malcolmsummers]

If I retain car will gap insurance pay the remaining balance

[kishanbhakta]

Hi Lawrence,
Here is the case if you please help me with up.
I bought this car called Mahindra XUV500 worth $ 24, 990 NZD.
Now I took the finance over 5 years at the rate of 9.95%. And I got charged $630 as a broker fees and establishment fees. And I bought the GAP insurance of 5 years worth $895.
After using this car for 1 month I found rust under all of the seats, under the car and everywhere. So I gave back my car to the dealer, and asked my money back. So after total 3 months, Dealer paid me back $24, 990. Now I asked my finance company, that I want to paid-off my loan. And during these 3 months I've already paid $2000.
So they asked me to pay total amount of $25, 400 to payoff my loan. Now here I'm in loss of $2400.
So, can I claim the GAP insurance in this situation. Because I'm putting $2400 from my own pocket for nothing. I don't have the car and nothing.
Waiting for your favourable advice.
Kind regards
Kishan