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Gap Insurance

Discussion in 'Model S' started by KCKIWI, Dec 4, 2016.

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  1. KCKIWI

    KCKIWI Member

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    Sorry if this has been discussed previously but I searched and did not come with any results. Waiting on delivery of my 60D and was curious if anyone of you purchased gap insurance?
     
  2. Corsair66

    Corsair66 Member

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    Every car I've leased in the last 25 years had gap insurance included by the manufacturer as a standard part of their contract. Does Tesla not include it? If not, I'll be sure to add it to my insurance policy.
     
  3. number12

    number12 Active Member

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    Alliant financing sold me it for $399. From what I understand it literally only helps you if you wreck in first couple weeks. Not worth it imho.
     
  4. DarkMatter

    DarkMatter Member

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    If you get it, get it via your regular auto insurance company. Mine only wants a few dollars a month for it and lets me cancel it at any time. Prepaid gap is the biggest scam going in current auto lending.
     
  5. patrick40363

    patrick40363 Member

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    If you are leasing through US Bank it comes with it.
     
  6. Corsair66

    Corsair66 Member

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    Perfect.
     
  7. Saghost

    Saghost Active Member

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    I got it from Alliant - mostly because they include with it payment of any insurance deductible as long as the car is on that loan. I didn't finance the whole car, so I'm pretty sure it'll never come into play otherwise.
     
  8. RogerHScott

    RogerHScott Active Member

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    I got it through Alliant as well, even though I didn't lease. I don't think your understanding is correct; it helps you as long as what you
    owe on the car is greater than what the primary insurer is going to claim is its fair market value if it is totaled. Given how much the FMV
    drops the moment you take ownership it is likely to be far longer than a couple of weeks before you pay off that drop, plus any further
    depreciation that occurs while you own it. I went out of my way to buy GAP insurance expressly so I wouldn't be driving around in a
    perpetual state of paranoia worrying that some idiot was going to hit me and give me a $20k haircut on my car.
     
    • Informative x 1
  9. rory breaker

    rory breaker Member

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    What about leases through Tesla finance? I dont recall. Want to say it is included but not certain.
     
  10. sdorn

    sdorn Director of Awesome

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    I am interested in whether Tesla finance lease includes GAP also. You definitely need it on a lease.
     
  11. No2DinosaurFuel

    No2DinosaurFuel Active Member

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    Like others have said unless you put 0 down or very low as down payment gap is not really needed. Alliant does give you some perks like pays you deductible of you ever get into a total crash for the life of the loan. So if you are going to finance for a long time it might be worth it because it does pay your deductible if you get into a total accident. But then again it is only if the other person doesn't have insurance and it is their fault or it is your fault.

    There was another perk that I forgot. It has to do something with extra money for a new car or something like that.

    But at the end of the day weigh the pros and cons. I plan to keep my car a very long time and I did put a lot down so it is not worth it to me. I rather save that money towards something else for the car.
     
  12. DarkMatter

    DarkMatter Member

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    Leases pretty much always include it in the cost of the lease.
     
  13. sdorn

    sdorn Director of Awesome

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    Yes, that is what I would like confirmed, that Tesla does this also. No one seems to have been able to confirm that so far. Does anyone have a copy of their lease agreement with Tesla finance they could post?
     
  14. RogerHScott

    RogerHScott Active Member

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    There have been a couple of different discussions about the pros and cons of borrowing versus paying cash for a Tesla. I put the
    minimum possible down -- which I've never done before -- just so that I could take advantage of GAP insurance. At 1.99% (let alone
    1.49) I've got better uses for that money anyway.
     

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