GAP insurance on bronco worth it?

[TheWoo]

GAP insurance can provide peace of mind when you don't have equity. And I don't mean real equity - I mean equity above what your insurance provider is going to depreciate your vehicle in a replacement event.

If you're buying a 50k Bronco and financing all 50k, no way your insurer is going to pay off a $50k note after you drive it off the lot if somebody hits you and totals your rig.

There's all sorts of discussion to be had about whether a person should make the financial decision to finance all 50k if they can't afford the hit if it's totaled, etc, but that's a different thread.

I don't typically buy GAP insurance, but I have a time or two in the past and for me at that time the peace of mind was worth it. I now have the means to self-insure that difference and no longer feel the need to buy insurance I'm highly unlikely to need.

Sponsored

 

[Bronco4lyfe85]

My advice is based on financial principles…yours is based on “I know 4-5 people”. That’s the difference. I guess you never wondered why gap insurance is pushed so hard….

Financial principles? You act like we’re talking about extended warranties here. Gap coverage is pure profit for dealers. It’s cost a couple dollars a month through personal auto insurance. It’s a risk vs reward thing, it’s usually $3-5 a month. So you can come out what, $250-300 ahead in 6 years? I’d rather just pay that and not even have to think about it, that’s nothing money.

 

[gentlemanbronco]

Didn't mean to start a rukus dude/dudettes!!
Just looking for opinions, unfortunately geico doesn't offer GAP but my financial institution does, which is what I'll probably go with so long as its not some crazy amount.

 

[1975U15]

Ya GAP insurance is a big no for me for various reasons. I too made mistakes in transactions earlier in life and bought a GAP policy on a truck. It was sold to me at time that it's just $15(may have been more than that)on your payment and it operates like a savings account because you get the money back...total lie. Never saw a penny back on the no interest "savings" account though I tried to get it back as the finance manager said I could.

If your self-insured and you have enough savings in the bank to cover a total loss (the GAP) on your recently purchased vehicle, it's an even worse idea. The current low interest rate environment is also reason not to buy a GAP policy.

I'm sure there are some that have had experiences where it worked out for them, but it's about risk and probability which IMO are very low and no risk transfer in this case is necessary.

My.02

 

[Thed]

If you're not putting 20% down, then get GAP in some form or another. As others recommend it's much cheaper to just go through insurance on it. Plus, you can cancel the GAP once you pay down enough of the loan if you go through insurance. If you finance it in you don't get that option, or get that money back.

Some loans these days are requiring GAP coverage. Watch out for those. They're usually the same loans that charge $850 for it.

 

[Bronco4lyfe85]

Didn't mean to start a rukus dude/dudettes!!
Just looking for opinions, unfortunately geico doesn't offer GAP but my financial institution does, which is what I'll probably go with so long as its not some crazy amount.

That’s not my favorite, because it’s likely $7-800 and you’ll pay interest on it.

 

[gentlemanbronco]

If you're not putting 20% down, then get GAP in some form or another. As others recommend it's much cheaper to just go through insurance on it. Plus, you can cancel the GAP once you pay down enough of the loan if you go through insurance. If you finance it in you don't get that option, or get that money back.

Some loans these days are requiring GAP coverage. Watch out for those. They're usually the same loans that charge $850 for it.

Thanks for the input! Well said

 

[gentlemanbronco]

Seems like the best option is thru insurance, so follow up, who are you using for insurance? I've been lazy with geico and should've shopped around over the past few years but haven't...

 

[Paul Gagnon]

It is definitely something that you should consider getting. I had it on my 2012 F-150 and three weeks before it was set to expire I was hit head on and the truck was written off. Because I had the endorsement, I received a cheque from my insurance company for the full purchase price.

 

[MyATV]

I've been lazy with geico and should've shopped around over the past few years but haven't...

I had been with Geico for 17 years up until a couple months ago. I switched to Progressive and saved significantly.

 

[Bronco4lyfe85]

Seems like the best option is thru insurance, so follow up, who are you using for insurance? I've been lazy with geico and should've shopped around over the past few years but haven't...

I use Am Fam, best rates are through their agents. I don’t even like speaking about it because I feel it’s a mistake. But I have full coverage including gap on my 2019 scat pack challenger and my wife’s 17’ Cruze and we only pay $120 a month for like 100/300/300. It was $280 on progressive for the same policy.

 

[gentlemanbronco]

Did a quick calculation thru my bank, they offer GAP thru loans and also thru a partnership with nationwide insurace. Turns out the quote I got is a whopping $2 more with loan/lease gap coverage... Thanks for everyone whose responded, it helps to have varying opinions, remember there's no right or wrong answer. Diffrent strokes fo' different folks !

 

[stras27]

I totaled a new Ford Fusion 3 months after I bought it. Gap insurance covered it in full and I was able to walk away from the crash and debt incurred completely. Won't go without it.

 

[GetWild]

some real terrible advice in here, as well as some good. If you are financing 80% of the car or more... get GAP. the plus to getting it through your insurer is is that its cheaper. the downside to getting it through your insurer is they may choose to repair a vehicle instead of totaling it out to avoid a higher payout. what "value" your Bronco holds isnt really a factor at this point. it will hold value to sell, not to an insurance provider. its value is based on the demand in terms of buying and selling one solely due to demand. If you arent prepared to fork out a hefty chunk if it totals, then you are a fool to not buy GAP of some sort.

Your Bronco WILL depreciate the moment you buy it in terms of raw value. now whether you can talk someone to buying it for what you paid or more is another story, but your insurance company doesnt care if you can sell it to joe blow for 2k over what you paid.

GET THE GAP

 

[Interstate]

Long story short, when I was younger and dumber I got taken to the cleaners on my 1st vehicle purchase. Having learned from my mistakes, I want to avoid any newb mistakes when purchasing my bronco and negotiating the final price and fees. I know I can probably negotiate the dealer prep fees, the doc fees, but I was curious about GAP insurance. I purchased it in the past but is it really worth it with the current car market and the bronco in high demand? I figure the resale value for the first few years will still be pretty decent as jeeps hold their value pretty well on resale. I think I read that the credit union I'm going to finance thru offers it as an add on to a loan, so just curious what everyones opinion is on GAP insurance for the bronco.

My down payment will be half of the cost of the bronco. The other half I will finance. So I won't be getting GAP insurance as I will already have a lot of equity in the vehicle. I also don't plan on selling the Bronco. With that being said, if I weren't putting down a significant down payment, I probably would get GAP insurance. However, I do think the value of the Bronco will hold though, as Jeeps holds their value. So, GAP might be good, but maybe not as good of a value than with other cars that lose their value quickly.

Sponsored