Yahoo Answers is shutting down on 4 May 2021 (Eastern Time) and the Yahoo Answers website is now in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
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.