Does anyone have a "Gap" policy for new vehicle?

[richl025]

BLUF: what do youhave for documentation of your Gap policy?


Reading another thread about a (probably) totaled Lightning made me a little nervous.

I've had my lightning for less than 2 years, but I still owe more on it than current Blue Book. That's fine, I plan to hold onto it for 10 years or so.

When I bought it, the dealer sold me a Gap policy, that he told me would cover the difference if, God forbid, the vehicle was totaled or anything. I don't really have any documentation of that except a line on the sales contract - do you guys have any other kind of verification, if you have such a policy?

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[RickLightning]

Assuming you financed via Ford Credit, it should be noted on your Ford Credit contract, and perhaps in your Ford Credit account. Or, if you call them.

 

[BhamDCam]

My truck is paid off now but I financed it with Ford and IIRC the contract did not include that. However, we pay a little extra each month for our auto insurance to pay out an extra 20% of our vehicles value if they are ever totaled. So if your Ford contract doesn’t include the gap coverage, check with your auto insurance company to see if you can add that option. I’m sure you can.

 

[NeighborGeek]

I just bought a 2025 Flash this week, and when adding it to my insurance I asked about gap coverage. They said it adds $55/yr to the cost, which seemed like a no brainer.

 

[Dave70]

Progressive insurance charges me like 10 dollars extra every 6 months for 20 percent gap coverage. It's really cheap.

 

[chl]

Yes buying gap insurance happens at delivery as an add-on option so you'd have paperwork about it - I got gap insurance even though I planned on paying off the temporary loan in 2 months with a retirement withdraw, just in case.

 

[ddimit]

Get GAP from your insurance company directly. I think mine was an additional $10-20 a year. Buying from the dealer financing department is a big ripoff and a profit center for them. Carrying it for 2-3 years until the depreciation levels out what's owed on the balance.

 

[PJnc284]

With the amount of depreciation with EVs, I would also verify if there are any limits in place or you could still end up owing money if you're way underwater.

 

[chl]

Yes, true.

Unfortunately, my ins company is GEICO and they do not offer gap insurance (last time I checked anyway) so I always get it from the dealership if I have a car loan - just more convenient even if more expensive.

Getting it from a third party ins company on my own while taking delivery of my vehicle is not my cup of tea...if I waited, I could get totaled driving home form the dealership and then be s o o l with no vehicle and $ owed.

The depreciation is so steep on vehicles, that even if it is relatively expensive at the dealer, it is MORE expensive not to have it even for a second after delivery. Sheet happens.

Since I always pay off my loans early I could just do without it I guess, but I am risk averse about things like that.

I haven't made a claim on my homeowners insurance ever, but I still buy it every year, just in case even though my mortgage is paid off.

Until today, same with my car insurance - no claims for a really long time, decades.

 

[jetfixr1]

Get GAP from your insurance company directly. I think mine was an additional $10-20 a year. Buying from the dealer financing department is a big ripoff and a profit center for them. Carrying it for 2-3 years until the depreciation levels out what's owed on the balance.

Second this. Very cheap and enough to cover the difference on what you owe vs the massive depreciation incase your car gets totaled.

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