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Gap Insurance Cancelation (US)

2K views 14 replies 6 participants last post by  LawsonGibbles 
#1 ·
For US owners, if you purchased gap insurance for your 124 Spider and paid off the note early, return to the dealer with a copy of the payoff letter and ask for cancelation and refund.

In a few weeks, you'll get a check in the mail. I got $250.

I honestly didn't know this was possible, but looked into it when after I joined a class action lawsuit with Wells Fargo, and how they handled gap insurance for loans they serviced.

Don't leave money on the table.
 
#5 ·
Factor in your tolerance to risk, as well. What you might find acceptable might be unpalatable to others.
 
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#4 ·
I saw how much my lender was charging for Gap and said no thanks. Then I found out Geico no longer offers Gap coverage. So I switched to Progressive, halfed my monthly insurance rate on three Fiats, and got gap through my insurance. So once it's paid off I will just drop that part of coverage.
 
#7 · (Edited)
Well, thing is, people making $100,000 a year shouldn’t be buying $50,000 vehicles to be paid over 84 months. Doesn’t matter if the bank approves you. But that’s what more and more households are doing.

The longer that loan hangs out there, the more slowly you build equity on the vehicle, and the greater the chances that something unforeseen will happen.

That’s living one inch away from financial disaster.
 
#8 ·
So I make $65000 a year (I work for a government employer; it's public info if anyone cares to look), and I bought a $20,000 vehicle. Would still rather not get stuck with the bill if some jack decides to rear end me and total it.

Sadly that puts me above over 50% of the US. Most people live an inch away from financial disaster. You can't buy a new or even nearly new car other than maybe a Nissan Versa or Mitsubishi Mirage for under $20,000. Even those new go for more. Even at those "low" prices, gap can make or break someone's finances if they get into an accident, whether it's their fault or not. You're essentially telling over half of the American public to shove off and take the bus.
 
#13 ·
You should not need gap insurance if you made a substantial downpayment. You should never be upside down on the financing, either. The last vehicles I financed were 25% down at 0%. My how things have changed in the auto finance world. When I bought my first new car in 1974 (and my next two new cars) you had to put 1/3 down and finance it a maximum of 36 months. That was financing the price of the car only. Tax and license and any extras were paid in cash up front, too, in addition to the down payment. Yes, you had to perhaps settle for a lesser car, or fewer options, or maybe you waited and saved more money, but the buyer was rarely upside down.
 
#14 ·
My frozen tears are for my totaled Fabiana. I did not have gap insurance and it cost me $7500 out of pocket to settle with my lien holder. Not happy, but it was whet it was. Purchased gap insurance for Aurora and then USAA canceled it. I’m not going to contract another carrier. I just hope another total isn’t in my future.😕

Dan
 
#15 ·
GAP insurance… Lol!
 
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