Why you should always get GAP insurance on new cars?

[CUPRAdriveR19]

Hi! I want to share this with you guys based on something real.

When buying a new or nearly new car, I always opt for GAP insurance. Why?
If your brand-new car gets into an accident soon after purchase (or within the first few years), your insurance will likely only cover the average market value at that time. For example, say you buy a car for $35k. As soon as you drive it foo the lot, it is technically used, and its value drops by a few thousand.

Now, imagine another driver hits your car and it is totaled. Their insurance might only pay you the current market value, which could be $3500 to $7000 less than what you originally paid. This is where GAP insurance comes in: it makes up the difference, covering the full amount you paid so you don't take a financial loss.

Anyway, I got mine at around $300, after my dealer wanted to charge me at around $500. So, if you are thinking about one (you should always get GAP insurance on new cars in my opinion), I would recommend chopping around before choosing the dealership option. Have a great one! I hope this would help someone.

 

[Bito90]

Could you share more details about the GAP cover you mentioned? I'm considering getting it for my new car, especially after reading your experience.

 

[That_Car_Dude]

Hi! I want to share this with you guys based on something real.

When buying a new or nearly new car, I always opt for GAP insurance. Why?
If your brand-new car gets into an accident soon after purchase (or within the first few years), your insurance will likely only cover the average market value at that time. For example, say you buy a car for $35k. As soon as you drive it foo the lot, it is technically used, and its value drops by a few thousand.

Now, imagine another driver hits your car and it is totaled. Their insurance might only pay you the current market value, which could be $3500 to $7000 less than what you originally paid. This is where GAP insurance comes in: it makes up the difference, covering the full amount you paid so you don't take a financial loss.

Anyway, I got mine at around $300, after my dealer wanted to charge me at around $500. So, if you are thinking about one (you should always get GAP insurance on new cars in my opinion), I would recommend chopping around before choosing the dealership option. Have a great one! I hope this would help someone.

Great advice! Have you had to use GAP insurance before, or is this just based on your research?

 

[Driver2938]

Hi! I want to share this with you guys based on something real.

When buying a new or nearly new car, I always opt for GAP insurance. Why?
If your brand-new car gets into an accident soon after purchase (or within the first few years), your insurance will likely only cover the average market value at that time. For example, say you buy a car for $35k. As soon as you drive it foo the lot, it is technically used, and its value drops by a few thousand.

Now, imagine another driver hits your car and it is totaled. Their insurance might only pay you the current market value, which could be $3500 to $7000 less than what you originally paid. This is where GAP insurance comes in: it makes up the difference, covering the full amount you paid so you don't take a financial loss.

Anyway, I got mine at around $300, after my dealer wanted to charge me at around $500. So, if you are thinking about one (you should always get GAP insurance on new cars in my opinion), I would recommend chopping around before choosing the dealership option. Have a great one! I hope this would help someone.

I think it is worth considering the car you are buying. For most cars (those that aren't particularly high risk for theft), GAP coverage might not be necessary. If you are in an area with high car crime, like Coventry, or if you drive a high-value car (like a Golf R, Audi S, or MBW M series), GAP insurance can be a smart choice. But for cars that hold decent residual values and aren't top targets for thieves, the changes of a total loss situation are lower.
With a new car worth upwards of $35k, the main risk is theft without recovery. If your car is totaled due to a crash, most insurers will replace it for the first year, so you are really only covered for years two and three, which might not justify the cost of the insurance. Anyway, it is a personal choice based on your circumstances and location.

 

[That_Car_Dude]

Hi! I want to share this with you guys based on something real.

When buying a new or nearly new car, I always opt for GAP insurance. Why?
If your brand-new car gets into an accident soon after purchase (or within the first few years), your insurance will likely only cover the average market value at that time. For example, say you buy a car for $35k. As soon as you drive it foo the lot, it is technically used, and its value drops by a few thousand.

Now, imagine another driver hits your car and it is totaled. Their insurance might only pay you the current market value, which could be $3500 to $7000 less than what you originally paid. This is where GAP insurance comes in: it makes up the difference, covering the full amount you paid so you don't take a financial loss.

Anyway, I got mine at around $300, after my dealer wanted to charge me at around $500. So, if you are thinking about one (you should always get GAP insurance on new cars in my opinion), I would recommend chopping around before choosing the dealership option. Have a great one! I hope this would help someone.

What has been your experience with claims on GAP insurance, has it been straightforward when you needed it?

 

[CUPRAdriveR19]

Great advice! Have you had to use GAP insurance before, or is this just based on your research?

Hey, @That_Car_Dude! I haven’t had to file a claim yet (and hope I won’t need to!), but my decision comes from seeing friends deal with situations where GAP insurance saved them thousands. One friend got their car totaled within three months of purchase and would have been stuck with an unnecessarily high loan balance if not for their GAP coverage. That's one of the few reasons. And of course, reviews I read online from other drivers.

 

[Ebao]

My insurance covers the first year. After that, I'll decide if I need gap insurance. I might keep this car longer than usual.