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Should I get gap insurance?
My vehicle cost 21k and I put down 14k so I finance 7k. Should I get gap insurance or not? Some of the benefits my bank mention if I get gap insurance is Get deductible reimbursement when any of your cars or trucks are damaged (not totaled) in an accident
Get automatic reimbursements of up to $500 per claim
File unlimited claims for the next three years. Am not sure if I need gap insurance.
The cost of me getting Gap insurance is a one time fee of $385.
2 Answers
- Anonymous2 weeks ago
"File unlimited claims for the next three years."
How many at-fault accidents are you planning to have in the next three years? LOL
I personally would take my chances that I will have none and save my $385.
- ?Lv 72 weeks ago
With a $7k loan on a $21k car I can't imagine any situation where you would owe more than the car is worth due to depreciation. You'll have the loan paid off before the car's value is below $7k.
That means the only benefit is the deductible coverage. But if you have a $1000 deductible it means you're paying nearly $400 now for the very slim chance of getting $1000 at some point in the future.
I'd pass. If you don't wreck the car you save $385
If the car does get wrecked you pay the deductible and you're only out $615 more than if you had bought gap.
My guess is that if you can afford $14k down on a car, you can cover a $1000 deductible.
