Used Car Loan Gap Ins Question

[StarkRaven$]

A family member was offered gap insurance from the credit union bank lender and they accepted it and it was rolled into the fianancing. I remember CV posted how it was a mistake when I accepted gap insurance but I can't remember the details. I have tried to do a search for the thread and cannot find it. Any ideas? Any input on this type of add on insurance?

[MarvBear]

GAP can be beneficial when a consumer makes less than a 20% down payment.  Personally, I would never purchase GAP from a credit union because of the limits usually imposed and the simple fact credit unions that I know of here in Florida do not allow for cancellation of the policy even when one is no longer underwater.  Credit unions usually charge less than an automobile dealer does for a GAP policy, but in my opinion Credit Union GAP is not worth it.

[StarkRaven$]

5 minutes ago, MarvBear said:

GAP can be beneficial when a consumer makes less than a 20% down pament.  Personally, I would never purchase GAP from a credit union because of the limits usually imposed and the simple fact credit unions that I know of here in Florida do not allow for cancellation of the policy even when one is no longer underwater.  Credit unions usually charge less than an automobile dealer does for a GAP policy, but in my opinion it is worth it. Did you mean to say it is not worth it?

 

[MarvBear]

Yea,  thanks   I fixed my post.  Thank you for catching my intent.