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Gap insurance help on Model S
- Thread starter Moparposterchild
- Start date
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- Tags
- Model S
Progressive offered gap insurance to me. I wonder if you can sign up for only gap insurance with them?
Alliant offered it to me, but it was a little confused. I guess it depends on how much you finance for the loan and if you think there's a chance, should something happen that the value the insurance company gives you is less than the remaining amount of the loan.
For instance:
100k car, you fiancé 90k. If you have gap insurance and the car is totaled and insurance gives you $60k for the value of the car, gap insurance covers the difference from $60k to whatever is left on the loan.
If you finance less, say $50k. If you have gap insurance, and the car is totaled and insurance gives you 60k for the value of the car, gap insurance doesn't do anything for you as the insurance is enough to cover what's left on the loan.
Diminished value is something that's separate. What happens to the $30k-$40k from the $60k that insurance thinks the car is worth?
For instance:
100k car, you fiancé 90k. If you have gap insurance and the car is totaled and insurance gives you $60k for the value of the car, gap insurance covers the difference from $60k to whatever is left on the loan.
If you finance less, say $50k. If you have gap insurance, and the car is totaled and insurance gives you 60k for the value of the car, gap insurance doesn't do anything for you as the insurance is enough to cover what's left on the loan.
Diminished value is something that's separate. What happens to the $30k-$40k from the $60k that insurance thinks the car is worth?
talhas3
Licensed Real Estate Salesperson Rochester NY, NJ
Do you guys get financing separately from say Chase first and then go to Tesla? Or give whatever financing Tesla gives to you?
smsprague
Member
Forget gap insurance. Just get an 'agreed value' auto insurance policy and request the sales price as the agreed value. If the car gets totaled, the insurance company will pay out the agreed value, or in my case, the full purchase price of the car regardless of remaining loan amount. If my car value is $60k at the time it is totaled, my insurance will pay me $106,250 - the amount I paid for my car. I have Encompass Insurance (through BBVA Compass) and my Model S coverage including agreed value, 250/500 coverage and inclusion in my $1M umbrella is only $110/mo.
Also, Encompass will pay the higher "Tesla Authorized" body shop rate without hassle. It is a high end product for high end assets.
Also, Encompass will pay the higher "Tesla Authorized" body shop rate without hassle. It is a high end product for high end assets.
