Gap Insurance on Tesla loan?

[rah7777]

Take a deep breath, Boomer.

I am a boomer...never purchased gap insurance. Never had an issue. When you own, the insurance company repairs or replaces with an equivalent car. So don't see why gap would be needed.

 

[Daks]

Because the insurance company or bank needs t0 make more money off you. That GAP insurance was pushed super hard by the bank I refinanced my pickup with. Like literally I go in to make a deposit and the teller asks me if I want to add it - months later still... I politely decline. (Lease is different and not all leases include GAP - Toyota Finance Leases are a good example of that...)

State Farm for those of us that have it, doesn't offer it in Florida or Alaska (the two states I've had their insurance) but it is automatically included in your auto loan if you did one through them. Not sure that US Bank which bought out SF Bank is doing this. (I doubt it though)

 

[thomas.george]

USAA offers Car Replacement Assistance, which pays %20 of the actual cash value of the car if the car is totaled. My six-month premium on my Model Y is $58.21.

 

[NBCGLX]

Because the insurance company or bank needs t0 make more money off you. That GAP insurance was pushed super hard by the bank I refinanced my pickup with. Like literally I go in to make a deposit and the teller asks me if I want to add it - months later still... I politely decline. (Lease is different and not all leases include GAP - Toyota Finance Leases are a good example of that...)

State Farm for those of us that have it, doesn't offer it in Florida or Alaska (the two states I've had their insurance) but it is automatically included in your auto loan if you did one through them. Not sure that US Bank which bought out SF Bank is doing this. (I doubt it though)

Many years ago I worked in high-risk collections for a captive automotive finance company, and I've seen firsthand just how important GAP insurance is for many, many people. If people don't put down a sizable down payment and then totals the car in the first few years after buying it, there's a very real possibility that the value of the vehicle is less than the balance of the loan. If one can't afford to pay that difference, the gap, then the finance company will charge it off against your credit (after going through collections). In today's use car market, particularly for Tesla's, maybe GAP insurance is superfluous, but it's also very inexpensive insurance to be sure you're protected. Now maybe if you're only financing something like 50% of the car or something like that you don't need it, but I'd wager that the vast majority of people are putting down as little as is necessary (that's typical).

 

[Hiline]

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.

How much does Tesla's GAP coverage cost you?