GAP insurance covers the difference between actual value of the car and the actual amount you still owe on it. let's say you total your Caliber 3 months after you get it. You owe 18,000.00 on it, but the insurance company says they will pay 16,500.00 replacement cost. The GAP will pay that difference. I think I paid a flat 99.00 fee on mine.katiescaliber said:
Gap insurance is one of the deals I hate getting. I've only had it once on a Vehicle as I didn't put a large down on it. Gap insurance, and the need for it, just proves that once you lay your hard earned dollar down for a car and actually drive away the value of the car will depreciate about 10% as soon as you hit the street. It'll be worth 20% less by the time you make your first payment. Don't believe me?, just try and sell your car.katiescaliber said:
This "difference" is what gap covers in the event you loose the car. If you have $15,000.00 borrowed and KBB comes to $13,900.00 on your 1 month old Caliper then the Gap Insurance will cover the $1,100.00 your Insurance Company won't. My credit union charges a flat rate of $250.00 per loan to purchase Gap. Bob
My kid just bought a new Dakota pickup. He was severely upsidedown on his trade in so the amount finanaced was considerably more than the cost of the new truck. His Gap ins was only a one time fee of $250.00 which was a bargain IMHO. But I've never had it myself. As far as I'm concerned if you either have a lot of cash for a down payment or you have a really good trade-in and the amount you finance is well below what Kelly Blue Book you will never use the Gap. My bank won't sell gap unless the amount financed is close to the BlueBook value of the car or they know you drive 30,000 miles a year and have 84 mo payments or something like that. If the car is worth more or at about Blue Book, Gap makes no sense regardless of the cost. BobGregoriusM said:
