Gap insurance?

[MY_Boy_Blue]

Did anyone get Gap Insurance on their loan through Tesla? I emailed finance and they said all they handle is leases and directed me to my soon to be lender to add it.

I called Wells Fargo and apparently they don’t offer it... they said it’s a 3rd party thing offered at dealers.

Gap Insurance is a must for me. A previous car was totaled at 1 year old (to the day) and thanks to Gap Insurance, I didn’t gave to pay $16k out of pocket when they totaled the car

 

[WolfHunter1043]

Put money down on the car. If you don't have money to put down, get a cheaper car and overpay on it then next time youll have money to put down. You shouldn't buy a new car and finance for 60-72 months to where if you total it, you get less than the loan of the car. Now you are paying for to add gap insurance to protect not being able to afford the car.....

 

[mcorf]

Got it on both my loans from Carolina Federal Credit Union. $416.

 

[MY_Boy_Blue]

Put money down on the car. If you don't have money to put down, get a cheaper car and overpay on it then next time youll have money to put down. You shouldn't buy a new car and finance for 60-72 months to where if you total it, you get less than the loan of the car. Now you are paying for to add gap insurance to protect not being able to afford the car.....

Wasn’t looking for a finance lesson, thanks... deff could pay cash, but my investments will make more than the 2% interest I’ll pay. Given the 35k miles I drive a year, I’ll be upside down for a while, even on a 3 or 4 year loan and the $400-500 that gap Insurance costs is an afterthought. To me it makes more sense to get it.

But you do you and keep giving unsolicited advice on the internet. I’m sure it’s very appreciated

 

[acarney]

Did anyone get Gap Insurance on their loan through Tesla? I emailed finance and they said all they handle is leases and directed me to my soon to be lender to add it.

I called Wells Fargo and apparently they don’t offer it... they said it’s a 3rd party thing offered at dealers.

Gap Insurance is a must for me. A previous car was totaled at 1 year old (to the day) and thanks to Gap Insurance, I didn’t gave to pay $16k out of pocket when they totaled the car

If a lender doesn’t offer it, usually an insurance provider does. It may be described as “loan/lease payoff” and is usually paid as part of your premium. You can drop it when you feel you’ve paid enough off that it’s no longer needed.

While it’s always good to put money down, right now money is so cheap with ~2% (and even lower) rates that it’s probably better not putting it down if you feel stable in your work and can afford a high payment. Keep that money making money for you and just pay monthly.

 

[DeenDeluxe]

Did anyone get Gap Insurance on their loan through Tesla? I emailed finance and they said all they handle is leases and directed me to my soon to be lender to add it.

I called Wells Fargo and apparently they don’t offer it... they said it’s a 3rd party thing offered at dealers.

Gap Insurance is a must for me. A previous car was totaled at 1 year old (to the day) and thanks to Gap Insurance, I didn’t gave to pay $16k out of pocket when they totaled the car

I declined the Gap insurance, since I'm financing less than a third of the car's price. Living on the wild side,

 

[UT4EVER]

Wasn’t looking for a finance lesson, thanks... deff could pay cash, but my investments will make more than the 2% interest I’ll pay. Given the 35k miles I drive a year, I’ll be upside down for a while, even on a 3 or 4 year loan and the $400-500 that gap Insurance costs is an afterthought. To me it makes more sense to get it.

But you do you and keep giving unsolicited advice on the internet. I’m sure it’s very appreciated

Don’t you just love guys like that.... They got all the answers. Only on the interwebs! They know zero about your situation and yet they make a blanket assumption based on their limited knowledge. That guy probably has $100k under his mattress and he is giving financial advice..... smh

 

[house9]

I got Gap Insurance through my car insurance not via lender.

 

[rhm2021]

sorry to comment on this old thread -- but did anyone else have any luck with getting gap insurance?
I decided to punt on paying for the car since interest rates are so low and inflation is so high ... so i put 0 down and got 72 months financing.
Loan is through US Bank , and they don't offer gap insurance. I just called and they said I have to go through the dealership ... I said Tesla doesn't have dealerships and she was confused, and clueless in general ...
My insurance (State Farm) also doesn't offer gap insurance. They said they used to when State Farm had auto loans, but they don't anymore, so I'm out of luck. I also asked what they do when cars are appreciating in value (at least in this current environment), and that my car is worth more now than what I paid for it ... they were clueless on how to manage this either...

Just wondering if there are any other options. Yes, I could put more down on the loan -- but that doesn't offer me any protection whatsoever... honestly I'd rather put that risk on someone offering me gap insurance, and deploy the money into equities.

 

[v8eater]

sorry to comment on this old thread -- but did anyone else have any luck with getting gap insurance?
I decided to punt on paying for the car since interest rates are so low and inflation is so high ... so i put 0 down and got 72 months financing.
Loan is through US Bank , and they don't offer gap insurance. I just called and they said I have to go through the dealership ... I said Tesla doesn't have dealerships and she was confused, and clueless in general ...
My insurance (State Farm) also doesn't offer gap insurance. They said they used to when State Farm had auto loans, but they don't anymore, so I'm out of luck. I also asked what they do when cars are appreciating in value (at least in this current environment), and that my car is worth more now than what I paid for it ... they were clueless on how to manage this either...

Just wondering if there are any other options. Yes, I could put more down on the loan -- but that doesn't offer me any protection whatsoever... honestly I'd rather put that risk on someone offering me gap insurance, and deploy the money into equities.

Not sure if you got an answer to your question but I'm in the exact same situation. Financed through USAA and insured with State Farm. I'm paying 5k less for my car than currently priced which is a start. I've always financed though NFCU and got gap insurance for $200 bucks. USAA rates beat NFCU so I went with them this time. Not sure where/how to get gap now or if it's even worth the trouble given the current price.

We pay our cars off early but I'll be making normal payments on the Y for about 8 months at least.

 

[Trip McNealy]

I got Gap Insurance through my car insurance not via lender.

Same here.

 

[torifile]

Why get gap insurance when used cars are going for more than new ones?

 

[rudebwoi]

Why get gap insurance when used cars are going for more than new ones?

This

 

[acarney]

This

Are damaged cars going for more than new?

 

[torifile]

Are damaged cars going for more than new?

If it’s a total loss, the damage is irrelevant. That’s what gap coverage is for.

 

[acarney]

If it’s a total loss, the damage is irrelevant. That’s what gap coverage is for.

That's sort of my point, people are suggesting you don't need the coverage when you can sell your used car for more than new... but try selling a car that has been in an accident and has $40k of damage or something...

 

[thecavalry]

That's sort of my point, people are suggesting you don't need the coverage when you can sell your used car for more than new... but try selling a car that has been in an accident and has $40k of damage or something...

This is why you get diminished value from an insurance claim - but you have to pursue it. They don’t just hand it out like candy if they think you don’t know about diminished value claims. But it makes you whole for the reduced value after repairs like that. Gap insurance is irrelevant in these cases.

 

[torifile]

That's sort of my point, people are suggesting you don't need the coverage when you can sell your used car for more than new... but try selling a car that has been in an accident and has $40k of damage or something...

That’s not what gap insurance is for. Gap insurance is for the time your car is totaled and the insurance company is paying you out. If the payout is lower than the amount you owe on the car - the *gap* - you’ve got to pony up the difference yourself. Gap insurance covers that difference. It does nothing if you go to sell the car.

https://www.allstate.com/tr/car-insurance/gap-insurance-coverage.aspx

 

[acarney]

That’s not what gap insurance is for. Gap insurance is for the time your car is totaled and the insurance company is paying you out. If the payout is lower than the amount you owe on the car - the *gap* - you’ve got to pony up the difference yourself. Gap insurance covers that difference. It does nothing if you go to sell the car.

https://www.allstate.com/tr/car-insurance/gap-insurance-coverage.aspx

Right. But people above were posting questions like “why would you get gap insurance when the used car sells for more than the new one.”

Assuming you kept the vehicle after an accident and tried to sell it to settle any remaining loan good luck trying to get top dollar for a salvaged or totaled vehicle. What I’m saying is it’s ridiculous to think just because it’s a Tesla it’s worth it’s weight in gold, regardless of the condition. If the car is totaled and you don’t have gap but do have a big loan, you’re cutting a check…

 

[thecavalry]

Right. But people above were posting questions like “why would you get gap insurance when the used car sells for more than the new one.”

Assuming you kept the vehicle after an accident and tried to sell it to settle any remaining loan good luck trying to get top dollar for a salvaged or totaled vehicle. What I’m saying is it’s ridiculous to think just because it’s a Tesla it’s worth it’s weight in gold, regardless of the condition. If the car is totaled and you don’t have gap but do have a big loan, you’re cutting a check…

Again, after an accident, you file a diminished value claim with the auto insurance company to recover the difference in what the car should be worth vs what it is worth after the accident/repairs. This is what restores you to whole and makes up the difference in value between a clean title and salvage title.

Gap insurance is not for this purpose at all.