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Samuel Said:

Gap Insurance?

We Answered:

Unless you live in England and ride the Tube you do not need Gap Insurance.

Elsie Said:

Does anybody know any Insurance Company sell GAP insurance for a car bought more than 12 months ago?

We Answered:

Have you spoken to GE Finance? I know they do gap insurance but not sure given your circumstances.

I would imagine they'd be wary selling it to you this late on incase you only want it because you are planning to do an insurance job on your car or deliberately crash it to get the finance paid off.

Man290663 is incorrect, gap insurance can be sold alongside finance for any car. I just bought a 3 year old car and was offered it at the point of sale.

EDIT: Yeah it can be worth having sometimes, My car got nicked years ago and I had GAP, just as well - the insurance only paid £12,500 but the outstanding finance was nearly £15,000!

Hope you were ok after the accident, the cars just a piece of metal and can be mended!!!

Emma Said:

Gap Insurance offered by insurance companies?

We Answered:

I do not know about GEICO but Progressive for sure does. It is very cheap but you have to choose it. Sometimes it is called "loan/lease payoff" or something similar to that. All of the companies we represent offer GAP and I have yet to see it cost more than $30 per year. Progressive could be more if you are young and/or have a bad driving record.
When I bought my car the dealer offered it to me for $700 & I had a good downpayment plus my trade. I get it for free on my policy with an endorsement that includes a bunch of other stuff (additional towing, additional rental, no glass deductible, etc).
I have been in insurance for close to 20 years and have been offereing it for about 18 of those years (it used to be expensive and a separate policy but no more).

Karl Said:

When you purchase a new car, is it better to buy the GAP insurance from the dealer ?

We Answered:

It's easier to purchase it with your private auto coverage. The best way to protect yourself is to put a sufficient down payment on the vehicle so you won't need Gap insurance.

Never finance a vehicle for more than 3 years and you shouldn't have to worry about the Gap.

Daryl Said:

I recently got into an accident and I want to know if my gap insurance will pay my loan?

We Answered:

You only get money for a down payment if you have equity in the car.

When your car is a total loss - the insurance company pays the actual cash value of your vehicle. That means, they pay what it could have sold for less your deductible.

If you owe more than the car is worth (being "upside down") then the gap coverage comes in to pay the difference between the ACV of your car and the balance of your note. You would get no money.

If you owe less than the car is worth (having equity in the car) the insurance company pays the finance company first if there is any money left over that goes to you.