TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker or making a Paypal contribution here: paypal.me/SupportTMC

Gap insurance help on Model S

Discussion in 'Model S' started by Moparposterchild, Apr 8, 2014.

  1. Moparposterchild

    Joined:
    Oct 27, 2013
    Messages:
    48
    Location:
    Los Angeles
    I'm financing through Chase and insure through Geico and none of those companies, Chase, Geico or Tesla offer Gap insurance. Does anyone have any recommendations? Thanks.
     
  2. ElSupreme

    ElSupreme Model S 03182

    Joined:
    Jan 13, 2012
    Messages:
    4,279
    Location:
    Atlanta, GA
    Progressive offered gap insurance to me. I wonder if you can sign up for only gap insurance with them?
     
  3. Rockster

    Rockster Active Member

    Joined:
    Oct 22, 2013
    Messages:
    1,005
    Location:
    McKinney, TX
    Alliance offered it to me.
     
  4. russman

    russman Member

    Joined:
    Nov 12, 2013
    Messages:
    385
    Location:
    California
    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?
     
  5. talhas3

    talhas3 Member

    Joined:
    Jul 2, 2014
    Messages:
    41
    Location:
    Edison NJ
    Do you guys get financing separately from say Chase first and then go to Tesla? Or give whatever financing Tesla gives to you?
     
  6. smsprague

    smsprague Member

    Joined:
    Mar 3, 2014
    Messages:
    517
    Location:
    Tucson, AZ
    Separate - I used Alliant - 1.74% for 72 months up to 95% of MSRP
     
  7. AmpedRealtor

    AmpedRealtor Active Member

    Joined:
    Jun 30, 2013
    Messages:
    4,711
    Location:
    Buckeye, AZ
    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.
     

Share This Page