GAP Insurance | Buy from dealer or Insurance company?
ฝัง
- เผยแพร่เมื่อ 5 ก.ย. 2024
- Buying A Car Doesn't Have To Suck™️
Is Gap worth it? Guaranteed Asset Protection better know as GAP insurance is sold at every dealership in the USA. But is it needed or simply a dealership scam? What does gap cost? When do you need gap? All these questions asked in this Gap insurance video.
▬▬▬▬▬▬▬▬▬▬▬▬▬
Get your Swag 🕶🧢 www.ChevyDudeStore.com 👕🔑
▬▬▬▬▬▬▬▬▬▬▬▬▬
SUPPORT THE CHANNEL using this link every time you buy on Amazon
chevydude.news/...
▬▬▬▬▬▬▬▬▬▬▬▬▬
📲 Text Me: (502) 414-8862 I'll keep you in the loop of all things Chevy Dude
▬▬▬▬▬▬▬▬▬▬▬▬▬
Car buying tips Facebook Group: www.Autobuying.us
▬▬▬▬▬▬▬▬▬▬▬▬▬
FOLLOW ME:
📸 Follow me on Instagram chevydude.news/...
➡️ Like my Facebook Page chevydude.news/...
😜 Check out my Silly videos: chevydude.news...
🎥 My 2nd TH-cam Channel: chevydude.news...
#Chevrolet #Louisville
gap insurance totaled car gap insurance explained automotive gap insurance chevy dude Do i need gap insurance
You can now find me at my own dealership in southern Indiana. My wife and I started Mike’s Car Store Located in Georgetown, In. Where Buying a Car Doesn’t Have to Suck™
We specialize in Late model Used cars for all types of buyers. If you have challenged credit we can definitely help you and ensure you don’t get scammed or pay too much. If you are a cash buyer or have excellent credit we will be glad to help you as well.
We are also specializing in our new Car Grabber service. If you are looking for a late model car and don’t want to contact a bunch of dealerships just to have them show you cars you didn’t ask for. We got you. Just head over to mikescarstore.com and tell us what you are looking for and we will get it for you.
What do you guys think of Mrs. Chevy Dude opening up the video? Get your swag Chevydudestore.com free shipping on everything.
It was great
Bad to the bone- ya boi THESMALLENGINEGUY
I prefer u opening the video
Anytime a couple can spend time together it’s a great thing and it comes through in the video
It was great💯
Glad I got GAP coverage on my Malibu you sold it to me! Idk if you remember me driving it off your showroom floor and totaling it in a different state 10 months later... so glad I got it! Walked away owing nothing!
Glad you made it out unscathed! That's the most important part! Was the car purchased new?
The last time I bought a vehicle I got GAP through the bank I financed it with. It was a fixed amount for the life of the loan (I think it was like $350), so in my opinion it was a no-brainer.
You paid roughly $10/month! That's a Netflix subscription worth, but it can certainly save you $$$
@@ntwalipat2 you don't need Netflix. All movies and shows are free online lol
Exactly what I did
@@tommy2346 Yeah free options are out there, but many do not have the streaming quality/consistency, convenience, and shareability within the household that applications like Netflix provide.
I bought a car with a very large down payment ($11,000) for an out-the door price car price of $29,686 which is 37%. The dealership (not this one, this was in California) added Gap insurance to the sales contract without even asking me for a mind boggling amount of $3000. When I told them to redo the contract without this, they said "it is for my protection". I told them to take it off or I walk. They took it off. When you put 37% down, there is no Gap to insure. Then they tried to sell me the B.S. protection plans. I just laughed.
Yes but you still owe 19k, if you total your car, you will have to pay those 19k.
His regular insurance would pay that.
@@sarahobrien3379 Exactly!
@@presidential3228 You still have to have this thing called INSURANCE. LOL
@@PaulWeezy50 not if u total your car and its your fault
Go through your insurance company because you can get rid of it once you don't need it as opposed to paying interest on it for the life of the loan.
Buying gap insurance from a dealer can be more expensive if the cost of the coverage is bundled into your loan amount, which means you'd be paying interest on your gap coverage.
Here's something I found out also.. if your trade or sell that Gap insured vehicle early. The dealership will refund a portion of that policy when you show them bill of sale..
Oh this is good. Can't wait to watch after my work meeting. I bought GAP insurance from the dealer on a new car six years ago. Never had to use it. 2014 Honda Accord.
Chevy Dude! Thank you sir. I just bought a new Trailblazer and was so confident due to your expert advice. I was in and out of the dealership in about an hour. So fast, thank you so very much.
I was told by my agent, that State Farm only offers it if they finance the car. I've only bought it once since I paid zero down on my 16 Mustang GT and financed everything. The car was totaled at a year old, but my insurance payout was $25 less than the payoff! Needless to say, I paid the extra $25 and collected the refund on the gap!
Yes that’s true. I called Every major insurance company 4 separate times to inquiry on gap. I decided to not get into details on stuff instead I gave the advice to what check on. 😉
wow, thats a suprise!!! A car sales man saying you should buy gap coverage from a Dealership. Everyone knows that an Insurance company's GAP Coverage is way less expensive!
and covers more too. this guy is nuts
I purchased a new car and my gap insurance was a one time payment of $300 through the lender and a one time $200 fee in the event I get laid off or fired. Both were voluntary options that I asked for. On my other car that I purchased earlier this year I had this coverage and they paid my loan for 6 months when I was laid off due to covid. I won on that. I paid $200 for that and they paid $1,200 in loan payments. I also used your tips and was able to get my new car under list and not pay any accessories fees. Total savings was about $5,000 on a 2020 model. Thanks again for all of your videos.
Can you explain the GAP insurance stepping in during COVID a bit more?
It makes sense to get GAP coverage. I’ve seen too many of my friends total their car and owe the difference the cars current value and what they owe on it. One guy I know still pays for one car he totaled 2 years ago cause of it.
yep never worth it unless u have the money to pay off that loan, but if u had the money for that loan then u coulda bought that car cash so yes, always get gap
Never get gap. It's a waste of money.
@@kingjon5818 clown
If u don’t overpay for ur car in the 1st place u won’t need it, the clown is u.
Ok so I was literally just in a wreck car is totaled… I do have gasp so they won’t make me pay the rest of the not3 correct?
Well made video. Not sure about buying gap from a dealer. Normally at that phase of buying car I say no to everything. But that’s just me
Wish I would’ve gotten gap on the car I wrecked two months later on 😅😅
I bought mine through the bank that did the financing. Assuming this is the same as the dealer option in a sense. But the dealer wanted 10 a month where as the bank was $500 and rolled into the loan. Plus as part of my banks gap in my totaled vehicle even though I didn’t use the gap they still provided $1,000 of with purchase of a mother vehicle if I used them to finance. Plus gave me a kicker of $500 towards the new loan. So all together gap paid $1,500 even though the car was totaled at more than the remainder of the loan. So in my case gap through the bank was the best option and cheapest option as $500 over a 60 term saved me $100 and had the most Bennifits.
Mike you make a great teacher when it comes to buying insurance or a car
I just added it into my pre approval from my credit union for 350
Thank you. I bought a new car last week and was pondering my decision to get Gap through the dealership
God bless. 🙏
I have Gap insurance as part of my collision and liability insurance. About ten years ago my Mercedes S Class was stolen from my driveway. I bought the car from Mercedes Benz Financing. My insurance paid the MSRP value to Mercedes after thirty day waiting period. Mercedes cut me a cheque for the amount of principal I had paid out. I then went to Mercedes and bought a new two year newer model Mercedes. I would never refuse Gap insurance.
Actually, you’re right brother I never buy for the insurance because chances are good if you go to the next Insurance, they won’t offer you gap always buy from the dealer. It’s already set into contract and make a payment to your car.
Made my bf get GAP, best decision because he got in a wreck that totaled his car like 6 months later and he didn’t have to pay anything !
Did he have full coverage?
@@optimumhunger3255 I have full coverage and gap. Just went through a wreck last week that most definitely will rule out my whip as totaled, shit was bad, but I’ll keep you posted on what happens cause I’m curious too. And what I wrecked was a 2019 Camry, and I barely had it for 2 months 😑
@@datoneguy-8294 Whats the verdict?
@@datoneguy-8294 did you end up getting payouts from both GAP and insurance?
I got GAP on my Escape and I bought it from my credit union for way cheaper than the dealer. I believe the dealer wanted 1400 for it my credit union wanted 499. So my suggestion is most likely check with your financial institution because they may have it a bit cheaper out of pocket.
This was an awesome video. I’ve always wondered about GAP insurance.
I have always got gap from the dealer. Had to use gap twice. I did shop an ins company for gap the dealer has always been cheaper.
How about dealers don’t do this: (Don’t try to add things to the contract to Pad your wallet)
When you’re about to sign the paperwork and after you’ve done the PPI (pre-purchase inspection) tell the sales person or the sales manager Respectfully but sternly that you’re willing to pay for the price of the car, tax and registration fee but not a penny extra for any other nonsense. And if it’s noticed on the paperwork you are ready willing and able to unwind the deal.
I have had dealers tell me that the finance company says I have to buy gap to make the deal. Ever come across that when selling or dealer just full of it?
0:46
What about the 3rd scenario? Gap coverage through your lender (which may be your own bank or credit union where you hold your accounts).
I personally have never purchased gap insurance due to having significant down payments, but that is another option.
thats my scenerio rn, i put a very good downpayment for a car, but i would still owe around 17k. since its rebuilt even tho it was a super small accident, i cant get gap.
This is the reason not to lease a car. You always have to buy GAP insurance. If you buy a car, always put 20% down then you don't need GAP.
used car dealer charges the whole amount on your loan and then you're paying interest on that whole amount. case in point, helped nephew get used car loan, has bad credit, being charged 22.99 % interest. every place he went . same interest because of his credit. dealer was showing $1700. add on for gap insurance and then you're paying that high interest on that whole amount for the length of loan on 12 year old vehicle, said take it off, he'll get it from insurance company. can you imagine how much further he would be underwater on that car with their gap insurance, nothing but a money maker for the dealership!
Yeah that’s crazy high for gap. Definitely make sure has gap coverage.
your teaching me more than what i learn in school
We get our gap from our credit union, it’s way cheap and you 1000 towards a deductible. Plus there’s something about a 1 year newer replacement car
In NY the banks offer Gap. Chase,Ally and TD bank at no charge. All leases in NY include Gap at no charge. Other banks my dealer has offers Gap insurance starting at $165 and the most expensive one is $349. We can not mark up the insurance in Ny.
I love your tips Mike, thanks and great work
I paid 4500 for gap on a 35 thousand dollar load. Is that too much? I have new license, new credit.
Dealers get a lot of money on GAP and extended Warranties, he is not talking about you having to pay extra to line the dealer's pocket. Get gap from a your credit union.
Solid video!
If we want to split hairs and get into F&I technicals fun, GAP is actually a waiver 🤗 not ‘insurance’ but it functions very similar so I find myself calling it insurance too. Another fun fact, once you’re no longer upside down on your vehicle you can cancel your GAP and get some money back!
Chevy Dude! Today I looked at a few used trucks and I came across a beautiful Certified Pre-Owned Vehicle. The dealer added a whopping $2,495 to the sale price when we sat down to discuss the price sheet. It was listed as Cert./Recon Fee and they explained it was to "ensure I was guaranteed the benefits of a Certified vehicle" and taking the $2,495 off of the total price would "uncertify" it. Have you ever heard/seen this fee and should it be expected when looking at Certified vehicles?
Never seen that before and I’ve bought multiple certified pre-owned vehicles (this is is texas)
no they r trying to scam y
We didn't buy gap from either one. Gap insurance was added to the credit union loan. The car was just totaled a few days ago.. now what ?
When I went to get my loan from the bank my bank asked me if I wanted gap insurance. The dealership I bought my car from never brought it up nor did my car insurance company.
Simple rule which will help ensure you do not make a bad deal.
Do not buy anything from the dealer F&I character at the time you buy the vehicle.
One more rule.
Do not take car buying advice from a car sales person. Talk about a conflict of interest.
Also, the duration of the gap coverage through your insurance may not be the term of the loan. Some stop after 2 years.
Bro, I'm like 14k in negative equity because I got a Benz. Traded for a Lexus so that at least the value will hold a little bit better and got gap insurance to help protect me in the case of a total loss! I saw this video about 1 year ago and never thought I would need gap until now!
If buy from the dealership it takes forever to get your car replaced. I lost my brand new 2016 Avalon and it took me a year to get another car. When I bought another car I bought my gap from my insurance company. They have all your car's information so it will get replaced faster. They don't have to haggle with the second party over who has what information and who should pay what.
I had gap insurance on one of my cars and it was totaled. The title was first class mailed and the USPS lost it, but would have been there in time to make the monthly payment. I had to order another title and overnight it and it got there one day late to the insurance to pay it off. Gap only covered $100 of the $1000 left because of it, so there are stipulations to being able to use it. We just bought a 2017 Ford Explorer for $20,000 ($22,000 with their fees). We needed a vehicle bad, and it really stinks to owe so much on a used car, but they let us do gap.
Any big insurance company does t even offer Gap
Some banks offer GAP as well for way less. Good video!
If your gap insurance through your insurance company cost you seven dollars a month you need to change insurance companies. It averages about $28 a year which is a little over two dollars a month. Then after three years when your loan is less than the value of the car you can just cancel that gap coverage. Whole lot cheaper than $300 to $800 for the term of the loan.
I called 32 insurance companies. No one told me $2 per month. Cheapest was $5 most expensive was $11. (How I came up with my average) there were stips (State Farm) where you had to finance with their bank to get gap and it was free.
Hey Mike have a great day!
That dodge wasnt hit by a drunk driver he hit a curve while doing 🍩 lol
So glad I got GAP for my Lexus. Totaled from hail only 7 months after purchase. It's great but Toyota has been such a hassle to work with trying to get it taken care of. Vehicle was totalled in July and we have STILL been making payments on the car.
wtf
Go Cubs! Great info and I'm happy to see we love the same baseball team
The GAP BAND has awesome insurance.
hi Mike. nice vid. liked b4 watching b/c I knew it was going to be good
APPI Gap insurance is not a good company. They drag their feet in processing your claim. In the end. They do not fulfill their end in paying off the remainder of the loan. I ended up using the settlement from the at fault insurance to pay off the remainder loan of my totaled vehicle. Settlement was just over $1000. Accident was not my fault. Lost my car. End up with no compensation and now I have a higher car note. It was a horrible experience!
As soon as you are no longer upside down on the loan, about halfway through the term, call the dealer and cancel your GAP insurance. You will get part of the premium refunded.
Even if you are upside down on a loan, GAP is a losing bet in the vast majority of instances.
Firstly, GAP only applies if your vehicle is totaled. How likely is that to happen?
Secondly, if you purchased from a dealer you likely paid $500 or more for the GAP. You could get adequate GAP coverage from an insurance company for a few dollars a month.
Thirdly, any totaled vehicle will likely be underwater by $2-$3K. Is paying $500 for such an unlikely event where you might owe $2K or so a good way to spend money?
Fourthly, if you financed the GAP coverage and you cancel that coverage the return of money will be applied to your loan. It will not be returned directly to you.
As with everything sold by a car dealer F&I manager, the smart move is to say no to any product you might consider and put the money you would spend for that product in a high interest savings account or an investment ETF.
Nice Chicago Cubs World Series Champions Poster
My gap insurance won't pay off my wrecked car its totalled I basically had to do there job for them it's a nightmare.
Buy gap from your dealer.
Or buy gap from your credit union if you are financing w credit union at dealer cost 800 vs CU 400.
Do not buy from you auto ins, cause if they drop you now you don't have gap cause not all auto insurance carry gap.
Also there are more exclusion on your auto policy than the gap company.
Keep up the great work man. Love the vids
*Jesus Christ loves you and cares for you have a good day everyone*
My mom's friend bought her son a brand new car. She did not purchase gap and a tire flew of the back of a truck and totalled the car. She was out thousands of dollars 😬
Don’t forget ur also taking a loan on the gap insurance, so there is interest on it.
How do you report a pushy dealership? Spent 3 hours yesterday arguing about accessorial charges that I didn’t want to buy (tire nitrogen, tint warranty, stop blinker). Asked for deposit back multiple times and they said it’s not refundable.
I purchase gap insurance from my credit union. The credit union already has the loan, it is better for them to be covered for the remaining balance.
No don’t get form the dealership it’s a nightmare . You should get gap insurance Thur you finance company.
Question I put a GAP insurance in my car when I pucharse the car in the dealer, now I pay off the car early ( tree years early) the dealer has to give me some money back for the GAP Insurance?
Most likely test. The vast majority of gap insurance policy you do get a prorated refund. Your contact will have this info.
Hey man, my parents really need a car, our car has recently broken down and my parents don’t have enough money for another one Me and my family would really appreciate the truck you said on tik tok
This is great info. Thanks CHEVYDUDE
I included GAP liability waiver to my loan contract with Westlake finance. So does it mean that the GAP will be fully covered? I was said by a manager of insurance company that they usually cover 25% of a gap
if you purchase from your insurance company and pay the care off early, then you stop paying GAP. If you buy from the dealer and finance it, it pay the entire period for something you did not even use completely.
In other words, never put money down on a car and buy gap insurance. The money you put down on a vehicle is immediately gone once you drive it off the lot.
Also, gap insurance is great for about the first 2 to 3 years of owning the vehicle. After that, your vehicle worth should match up with what you owe unless you were an idiot and bought a vehicle way over MSRP
Your bank or credit union can do it as well.
10 years in insurance and these reasons are totally false and based on his perception, get gap through you’re insurance company. Call anyone of them (they all have it minus GEICO) and ask for the benefit of gap though insurance any they will ALL say the same thing - because it’s universally known in the industry why it’s better through ANY insurance company. Like not accruing interest and removing the coverage once the gaps been reached.
That makes no sense. 🤔 I rather have 2 insurance on tje same vehicle but from 2 different companies. Only cover the remaining (GAP) portion with the 2nd to avoid fraud charges if your state has that. Make sure to get it in writing and drop the 2nd insurance after the 2 year.
Hmmmm, you missed 2 things 1 gap on lease. 2 if you buy gap from dealer your paying interest on it. Example $500 x 5% int over 60 months
Gap is always on a lease and we’re talking less than $80 over 72 months at 6% interest-rate.
@@ChevyDude just asking you didn't mention it . So that $80 then is more the car insurance company. Means your wife wins...lol
This was a very well made video
all his vids r well made
Be careful on who the company is selling the Gap insurance, I had Gap insurance on a car I totaled but the company refused to completely cover the loan when I totaled the car
Why not?
@@allthingskennedy1382 I can't remember what they actually said but it was to the effect that the loan was too much than what the car was worth, something along those lines.
I bought Gap through the Dealer. It works.
So when I got the gap, I kept my car for three years bought the gap insurance through the dealership. I traded that car for a new car and I canceled out the gap. Do I have money coming back?
My gap insurance is 79 extra a month
Saw your chevy giveaway video on tiktok. Immediately following walking into the house from finding out my 96 k1500 has a burnt valve.
Wow your really good at explaining this! 👍🏼👏🏼😁
I bought my gap insurance from my credit union
So basically, if I'm buying a $30k car and I put down $20k as the first payment, there's no need for gap?
Why tf would you put 20k down bro lmao
@@MarkDavis-pp1kh I actually put down $15k.
@@jeffghant4760 why ? That’s basically paying cash
@@MarkDavis-pp1kh big deal. I'm spending the money anyway.
As Always...Great info!!! Also if someone buys a newly used vehicle from y’all can they get the same warranty as they would if they bought from that vehicles manufacturer ? And what all brand to y’all sell new?
I'm here because my 2016 Ford Escape was T-Boned by an illegal POS that fled on foot. Within hour of accident, the car was reported "stolen". Cops instantly knew it was a bogus report. But the owner of the car won't say who was driving their car. They of course have no insurance, and no title for the car. So I'm left having to pay for the damage they caused. Pretty sure I bought gap insurance back in the day from the dealership. Will hunt the paperwork down tomorrow. But I still owe 9k on it and I'm sure they will only give me 7K'ish for it. I pray I have Gap insurance on it.
Always make sure you get GAP if they offer it thru the dealership or insurance. You don’t want to be stuck with negative equity if your insurance doesn’t cover all of your car.
@@elz1250 Yeah, I just watched some jackasses video saying not to get it.
I checked my paperwork and I did buy it through the dealership. It's on my credit unions loan financing form. So happy I got it. My car had a lot of miles on it. No way my insurance will give me enough to pay it off. Now the hunt for another vehicle begins. Just wish the illegal scum hit my other car. The one that's paid for and isn't worth anything. Now I'm left with a the beater, and have to start over on paying for a newer car.
Hey I went looking at cars and actually saw yours!
Ive bought a car from a dealer where they said thwy dont provide gap insurance
I have it on both my dealership and my insurance.....am I wasting money? 😭
Hey! I saw your Tik Tok. Normally I don’t do this sort of thing but you’re giving away that truck when you meet your goal. And I’d just like to say it would mean a lot to me if I got it. I walk to and from work everyday it’s about a 30 minute walk and it’s getting cold out here in New England. If someone is more deserving than I am which I’m sure someone is, then they deserve to win more. Just wanted to throw this out there in case of a miracle lol have a good day
Hey I have an odd question can you get out of a lease if you have a medical problem that you cannot drive the vehicle or get in it
Fun vido! Thank you so much guys. Ya'll helped me take a more clear decision on the used car am about to buy. :)
Does the insurance company cover the Gap if the insured is deemed "not at Fault"? Also you would be giving one insurance company a monopoly over the vehicle, meaning they would have to pay both claims, and they may not want to pay both claims and your vehicle should have been totaled and it wasn't....
great video Mike good information always great seeing the wife in your videos
Thanks. We appreciate you. It’s been a fun year getting her involved more with the channel. I think it allows us to have some fun with everything too.
This video is logical and insightful
I bought mine through my crsdit union. I paid $300
Is collateral damage insurance the same as gap?
So if you put down 20% or more on your down payment, don’t get GAP?
Got gap from insurance but its like 3.50 a month and probably gonna take it off cuz value of car more than loan now