i have gap insurances for car. why is it important to have it. also i havnt had a car accindent in two years.?
i drive a 2007 dodge caliber, and when i pay my car payment its adding to my car payment as well. but if i take it off i would save alot of money in the long run. i pay 35 dollars a month for it. so what should i do. my loan it for 6 years.
Tags: accindent, also, car, havnt, important, insurances, Years
gap insurance covers in case your car gets totaled, i think. If you have a good driving history i really wouldnt worry about it too much. I dont have it and I also have the same car, its great!
gap insurance is very important in the Long run…as soon as you drove that car off the lot it lost some of its value, and it will continue to lose value with every mile you drive it…therefor you now owe more for the car than it is actually worth, gap insurance covers that difference if you are in an accident that totals your car…
Gap insurance covers the gap between what you owe the bank for the car and what it is actually worth in the event of a total loss.
If you are upside down on your loan, and rolled money in….or paid no down payment..it’s safer to keep the Gap insurance.
If you paid a large down payment, you may not ever have a gap between the two values, and then you should drop it.
I disagree with the person that says that you don’t need it. When you drive your car off the lot it depreciates a lot. If you total your car you will only get blue book value for the car. This will leave you with no car and owing the rest of the loan yourself, and sometimes it’s a lot. Saying if you’re a good driver, don’t worry about it is like saying ,If you’re a good driver, don’t get insurance.It’s foolish. If someone else hits you and totals your car and you owe more than it’s worth you are still only going to get what it’s worth. Not what you owe on it.Gap insurance is usually a one time amount paid at the time of purchase. You are paying way too much for it. Shop around with some other companies for it and I think you can do much, much, much,better.
After more than 10 years without an accident, I totalled two cars 2 1/2 years apart…I wish I would have had the gap insurance. At least I listened to my insurance agent about adding rental to my policy after the accident in’02.