Full Version: GAP Insurance
Let me get this straight:
Can an owner of an existing loan on their own vehicle just walk in and purchase GAP insurance? Do the CU's sell it for a decent price? My SUV loan is with Penfed.
QUOTE
The projected rate increase would push the average dealer price of GAP coverage to $200 or more a policy. Dealers typically charge buyers $500 to $700 for the insurance. Industry insiders also said that the rise could discourage many insurers from entering the GAP market, citing the fact that ten carriers stopped underwriting GAP in the past three years. There are currently only seven major providers in the market.
Can an owner of an existing loan on their own vehicle just walk in and purchase GAP insurance? Do the CU's sell it for a decent price? My SUV loan is with Penfed.
QUOTE
Can an owner of an existing loan on their own vehicle just walk in and purchase GAP insurance?NOT FOR ME THEY CANNOT. Do the CU's sell it for a decent price?Probably, although from what I have seen the coverage is not so substantial as those policies offered via a dealership. My SUV loan is with Penfed.
I'd have to say one gets what one pays for.
QUOTE(MarvBear @ Dec 23 2005, 03:48 PM) 
QUOTE
Can an owner of an existing loan on their own vehicle just walk in and purchase GAP insurance?NOT FOR ME THEY CANNOT. Do the CU's sell it for a decent price?Probably, although from what I have seen the coverage is not so substantial as those policies offered via a dealership. My SUV loan is with Penfed.
I'd have to say one gets what one pays for.
So the reason the average dealer tells people " you have to buy this now ", is that most dealers cannot sell it after the sale of their car due to their agreement with the insurer?
And after hearing this from mnay dealers over the year, I gradually began to believe no one could sell it to me after the purchase?
If we sold after the fact we would essentially not be in compliance with Fed Reg Z.
I would not be willing to open myself up to compliance issues in case of a consumer complaint where it is not documented on the face of the retail installment contract.
I would not be willing to open myself up to compliance issues in case of a consumer complaint where it is not documented on the face of the retail installment contract.
QUOTE(MarvBear @ Dec 23 2005, 04:14 PM)
If we sold after the fact we would essentially not be in compliance with Fed Reg Z.
I would not be willing to open myself up to compliance issues in case of a consumer complaint where it is not documented on the face of the retail installment contract.
I would not be willing to open myself up to compliance issues in case of a consumer complaint where it is not documented on the face of the retail installment contract.
OK, then, I feel like I am playing twenty questions; lol!
If I, as a consumer with an auto loan and a 2004 vehicle, is marginally under water on an auto loan (I have no idea what value they would actually use if something were to happen), wanted to purchase GAP insurance, where would I go, specifically?
In other words: Would Fed Reg Z govern a CU or just a dealer?
Fed REG Z
Governs all disclosures on a retail installment contract.
I don't know where you would go. I do know my CU will sell it after the fact. And I have heard some insurance companies offer it after the fact.
Governs all disclosures on a retail installment contract.
I don't know where you would go. I do know my CU will sell it after the fact. And I have heard some insurance companies offer it after the fact.
QUOTE(MarvBear @ Dec 23 2005, 04:26 PM)
Fed REG Z
Governs all disclosures on a retail installment contract.
I don't know where you would go. I do know my CU will sell it after the fact. And I have heard some insurance companies offer it after the fact.
Governs all disclosures on a retail installment contract.
I don't know where you would go. I do know my CU will sell it after the fact. And I have heard some insurance companies offer it after the fact.
OK. I have bookmarked that one, and will review it soon. Thanks. For GAP insurance I am sure I can start with PENFED.
Use the "private party" value from kbb, edmunds, nada, etc. as an estimate of how much your or the other guy's insurance will pay in case of total loss.
Some GAP is better than others, for example some will not cover negative equity rolled into the deal. If that is the reason you are upside down, that GAP will be worthless to you. Like everything else, read the fine print before buying.
Some GAP is better than others, for example some will not cover negative equity rolled into the deal. If that is the reason you are upside down, that GAP will be worthless to you. Like everything else, read the fine print before buying.
QUOTE(mk_378 @ Dec 24 2005, 08:07 AM)
Use the "private party" value from kbb, edmunds, nada, etc. as an estimate of how much your or the other guy's insurance will pay in case of total loss.
Some GAP is better than others, for example some will not cover negative equity rolled into the deal. If that is the reason you are upside down, that GAP will be worthless to you. Like everything else, read the fine print before buying.
Some GAP is better than others, for example some will not cover negative equity rolled into the deal. If that is the reason you are upside down, that GAP will be worthless to you. Like everything else, read the fine print before buying.
I thought that was the whole point to GAP insurance, to cover negative equity. What am I missing? Do I not understand the upside down thing relative to negative equity? What other reasons for neg equity other than being upside down?
If you didn't bring in a down payment or trade with positive equity, always expect to be upside down at least a little. Insurance will rarely pay the full retail price that you paid with TT&L, etc.
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