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is there such a thing a "gap" insurance

Discussion in 'Ferrari Discussion (not model specific)' started by Dr C, Apr 2, 2004.

  1. Dr C

    Dr C Formula Junior

    Dec 1, 2002
    480
    Kansas City
    Full Name:
    Ed
    #1 Dr C, Apr 2, 2004
    I don't know if "gap" is the correct term or not. I, for one, would probably not purchase a f-car if I knew that it had been involved in a serious wreck or had had serious body work. My Mitsu VR4 had hail damage on everything but the rear view mirrors and the two bumpers -- everything else had big dents all over it. I had a heck of a time trying to sell it because no one wanted a car that had been repaired like that. Ended up trading it in on a Lexus (the sales person never asked about repairs and, after months of trying to sell it myself, I didn't volunteer or cover up the fact that is was a complete repaint). Since I subsequently did an "in-out" for my 308, it was worth it!

    Is insurance available that would cover the difference between what you f-car was worth before and after a wreck or major body work? Just wondering. Surely someone else here has gotten screwed either by the weather or another driver?
     

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  2. BigTex

    BigTex Seven Time F1 World Champ
    Rossa Subscribed Owner

    Dec 6, 2002
    74,143
    Houston, Texas
    Full Name:
    Bubba
    #2 BigTex, Apr 2, 2004
    We just had a thread on "Diminished Value" Check that one.
     
  3. thecarreaper

    thecarreaper F1 World Champ
    Silver Subscribed

    Sep 30, 2003
    16,381
    Savannah
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    I NEED A JOB
    #3 thecarreaper, Apr 2, 2004
    i may be incorrect but i believe " gap" insurance is for leasing. comprehensive should cover everything else. read the fine print and ask lots of question before taking the plunge! insurance companies are not all on your side!!!
     
  4. twoshort

    twoshort Rookie

    Jan 22, 2004
    10
    #4 twoshort, Apr 2, 2004
    I'm an independent agent in western Michigan. Gap coverage (at least in the state of michigan) is to cover the difference between what you owe on your car and what it's worth. That way, if your car has depreciated a lot and you have a total loss the insurance company will pay off the loan instead of giving you market value.
     
  5. LAfun2

    LAfun2 F1 Veteran

    Oct 31, 2003
    6,106
    California
    Full Name:
    Ryan
    #5 LAfun2, Apr 2, 2004

    It can be purchased through your financing company as well, when you buy a car. In case you total the car, and you owe more on the car than it is worth, gap insurance steps in and covers the difference so you are not "upside down" on the deal.
     

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  6. ColaGuy

    ColaGuy Rookie

    Nov 1, 2003
    31
    Santa Rosa, CA
    Full Name:
    Joel White
    #6 ColaGuy, Apr 2, 2004
    I had it on a lease at one point in time several years ago. Got in a bind, traded in a car I was upside down in. Effectively putting the difference on top the price of the new car, paying much more than the car was worth, but ultimately getting out the old one. New car was totaled after aprox. 6 mo. GAP insurance saved me, covering the total I owed on the car, which was of course FAR FAR more than the car was worth. Ultimately it was a financial savior at the time. Not sure if you can get it on loans, or just leases. I think with a reasonable down payment it is not needed as you should never be upside down on the value of the vehicle with an adequate down payment. In a total loss, you would simply lose your down payment, which GAP would not help you with.

    .02
    Joel
     

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