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Gap Insurance on Tesla loan?
- Thread starter Larryfl1
- Start date
Wow..that has me concerned...started to think as I’m putting money down to make payment softer but in reality I’m setting myself up for a loss if the car is totaled ever...
I see the auto insurance companies can provide it as an option..probably not as good coverage....
I’m almost thinking of bailing on the Y and wait for a lease option
I see the auto insurance companies can provide it as an option..probably not as good coverage....
I’m almost thinking of bailing on the Y and wait for a lease option
cgiGuy
Active Member
Take a deep breath, Boomer.
cgiGuy
Active Member
Does your insurance company offer it?
I have to check with my insurance company monday... from what i read with some others the gap will possibly cover 20% over the value of the vehicle... so that would reduce the risk...
Starting to think larger down payment to reduce payment does not make sense and only sets up for a potential negative situation at least fro the first 2 years...
Starting to think larger down payment to reduce payment does not make sense and only sets up for a potential negative situation at least fro the first 2 years...
Is it even something that's offered outside of a lease? For a lease it makes sense, as you'd otherwise end up with a potentially huge bill in case of an accident. If you own the vehicle (with a loan) that is just your risk. I guess it could be offered (after all it's just an insurance and the insurer can price it according to their risk) but would not be cheap.
If this others you, check with the lender you are borrowing the money from (tesla isnt the lender), or check with your insurance. My credit union (navy federal) offered gap. I put a very large down payment on the car so I didnt need it but it was offered.
Many ways to get it if you want it, or you can self insure for it by either having the money in reserve, or putting a large enough down payment down so that you wont have a gap. Putting a large down payment on a car is not quite the same as putting one down on a lease, but I am not getting in to that discussion here.
Many ways to get it if you want it, or you can self insure for it by either having the money in reserve, or putting a large enough down payment down so that you wont have a gap. Putting a large down payment on a car is not quite the same as putting one down on a lease, but I am not getting in to that discussion here.
What’s the thoughts on how much the car will depreciate annually as the seller? I know its a guesstimate...
Everyone always says resale is great when you are buying it but when selling traditional cars it usually stinks...
Typically in reselling Tesla do you get the delta back for performance and FSD?
Everyone always says resale is great when you are buying it but when selling traditional cars it usually stinks...
Typically in reselling Tesla do you get the delta back for performance and FSD?
I never pay that much attention to it because I dont buy a car thinking about how much I am going to make or lose when I sell it. You dont actually "realize" any losses till you sell.
With that being said, specifically for model 3s, the used market is VERY strong, and every week or so we get someone new posting to the site saying "WTF is up with tesla used car pricing?!?!? used teslas cost almost the same as new?!?!?
Or "I want to buy a LR AWD gently used model 3 for 40k, why cant I find one for that?!?!"
Who knows what it is in the future, planning on resale value before you even buy the car is silly to me, but some people make their purchasing decisions on how much it will be worth when they sell it, so /shrug.
Right now I am planning to have the car for a while.. 6-7 or even 8 years. Who knows or cares what it will be worth then? Gap insurance is protecting you basically at the first couple years of your loan or so, if you put very little down.
cgiGuy
Active Member
Gap insurance is pretty common with the places I've banked/insured. I've used it in the past with loans from credit unions and it was around $150 (one-time) for a $50K loan, if memory serves.
I think navy federal offered it to me for $199, for a 30k loan for my model 3. I declined it because that 30k loan was less than 50% of the cost of the car (2018 model 3 performance with EAP). With tax / lic / doc etc, the out the door price on that car was like 75, and I paid the rest in cash. I was going to buy a MR model 3 outright (they were available when I bought), but I drove the performance on a test drive and basically said" shut up and take my money!!!"
Holy cow the level of outrage in this thread...
Tesla does offer GAP insurance. I have it right now.
Tesla doesn't do the loan, so why would they offer GAP insurance through a financing arm they don't have?
But Tesla does do insurance now (in California and soon to be expanded). I have Tesla insurance. I have added GAP insurance through Tesla insurance.
If you don't/can't have Tesla insurance then call your own insurance and they very likely have it. Otherwise contact the bank who actually did your loan and ask them.
Tesla does offer GAP insurance. I have it right now.
Tesla doesn't do the loan, so why would they offer GAP insurance through a financing arm they don't have?
But Tesla does do insurance now (in California and soon to be expanded). I have Tesla insurance. I have added GAP insurance through Tesla insurance.
If you don't/can't have Tesla insurance then call your own insurance and they very likely have it. Otherwise contact the bank who actually did your loan and ask them.
So much misinformation. The assertion that you don’t need gap insurance because of a large down payment? One doesn’t have anything to do with the other. A down payment is a waste of money that you should have kept in your savings account, mutual fund, or otherwise earning interest (even if only 0.5%) and pay out of monthly. If the car is ever totaled you will lose any down payment you’ve paid, weather it be a lease or a loan. GAP insurance covers the difference between what your car is worth when totaled and what is owed on the loan. It’s not very expensive relative to the potential amount you may owe and is absolutely a worthwhile investment on any car, someone saying otherwise really loves to live life on the edge.
I’m surprised to hear this. I purchased gap insurance from State Farm in 2017 and our loan was through a credit union. Perhaps they’ve stopped offering it.
For the Model Y we picked up this week, we switched insurance providers to Progressive. Progressive does not offer gap insurance, so we purchased gap coverage from our lender (DCU). They’ll forgive our remaining balance on the loan if the car were to be totaled.
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My wife's totaled model 3 was still "worth" as much as a new one because of the screwed up used market for teslas. There may not be a "gap" between what the car cost and what it is worth when totaled in the near term for a model 3 or model Y ..
We actually made money off of her car getting totaled, which is ridiculous.
We actually made money off of her car getting totaled, which is ridiculous.
NJEV-Don
Member
Cost me $50 per year to add GAP Insurance to cover my Model Y. Also cost me $63 to add the increase of the value of the car when I upgraded to FSD if god forbid the car is totalled. I feel it’s overall pretty awesome coverage for reasonable cost. My total premium is $1363 with NJM Insurance in NJ.
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