A little info for everyone..Lease/Loan Gap Coverage

Someone just replied to a previous post of mine and it got me to thinking..some of us have knowledge that others dont..like i have a lot of (or more then most) knowledge about insurance..

so i just wanted to share a lil knowledge with you all today..If you have a car financed, or are about to finance a car be sure to add Lease/Loan Gap coverage on your CAR INSURANCE policy. Do not purchase it through the dealer..most, if not all insurance companies offer Lease/Loan Gap Coverage and to add it to your policy the average cost is $40 a year..if you purchase it from the dealer along with your loan its upwards of $500 and on top of that you are being charged interest on it..so dont bother with that..contact your agent to confirm the annual cost.

my nieces car was totaled back in december and her loan on her vehicle was upside down..meaning she owed more on the car then the car was worth..and the insurance company will only pay what the car is worth..she owed like 14000 but the car was only worth 10,000 so she was stuck with that 4000 balance....had she had lease/loan gap coverage her insurance company would have paid that $4000 balance.... it doesn't matter who's fault the accident is, or whos insurance is paying the claim..

Thanks Kellie!!!
I didn't know about gap insurance until we got a 'new' car recently, a good friend of mine tipped me to it. However, we DID get through our lender, I was not aware that you could get it from your insurer on the car policy. I will know better next time!!! 

you should contact your agent and see how much it is to add to your policy..then you should contact whoever you have the coverage with and cancel it..see if they will refund your monies prorated..get it off the loan..it isn't worth it..

I have always gotten GAP insurance because I switch cars every 2-3 years and that way if anything happened and my car was totaled all of the negative equity wouldn't come back and bite me.

Well Rhonda I am not the baller and switch vehicles every couple of years but when I do finance a vehicle I get the GAP insurance as well.  Thanks Kellie for putting it out here so those that did not know will have the advantage now. I always thought people knew about it. 

Baller girl puleazz that is WHY I need GAP.. LOL

I really need to consider leasing since I don't put alot of miles on a car and do switch cars every 2-3 years. I have came to the conclusipn I will always have a car payment UNLESS I win the lotto.

yea  a lot of people know about it but just think they have to buy it with their financing..and that is just way way way to expensive..just have it added on your car insurance and be done with it..much cheaper..and a lot of times carriers have premium endt that for a flat fee you get a bunch of coverages..on my policy my premium endt includes rental reiumbursement, gap coverage, and a bunch of other stuff that i cant think of..lol..and it was only $35 a year..and that coverage any vehicle on the policy...so $35 per year for 2 cars..as opposed to $500 plus interest on 2 different loans..yea right..

Good Idea!!  I was thinking along these lines as well. 


Are you  in all lines or are you just P&C?

My fields of expertise are life insurance & travel

Commercial Property and Casualty.

I was in insurance for about 10 years and I still maintain my agent's license.  My experience is in workers' compensation and automobile insurance.  One of these days I really want my own agency.