Do you know about gap insurance?

[Anonymous]

Someone I know was in an car accident and it was the other persons fault and the one at fault, their insurance only covered as much as my friends car was supposedly “worth” which was less than what he had left to pay on his car.. is that illegal?

[Anonymous]

Yes GAP insurance is something separate. It stands for Guaranteed Asset Protection. I learned this when I was in my early 20’s. Got into a car accident which happen to be the other person’s fault, but was left w $2000 still due on what I owed. Once you leave the lot w your new car, it loses value over time w how old it is, how many miles it has on it, etc. It depreciates. So when the car insurance company punches in all those factors they’re given an estimate of how much that car is worth in whatever co Siri on it is regardless of how much you still owe on it. That’s what the insurance company will pay out if the car is a complete wreck. Yes it’ll cost extra. When I got my last vehicle they offered it to me at the dealership.

[Asker]

Thanks. Why are you anonymous? Nothing you just said seems embarrassing or revealing.. why?

[Opinion Owner]

I just am.

[Asker]

Mhm.

[Asker]

Is it because we got in an argument in the past?

[Opinion Owner]

I don’t think so. Iva what’s been anon regardless of my answers.

[Asker]

Well can you message me privately?

[Opinion Owner]

I could. May I ask why? Lol

[Asker]

Because I’m curious as to who you are?

[Asker]

And you seem intelligent and i want to hear more of your opinions.. I just want to stalk you.. but in a non creepy way 🤷🏼‍♀️

[Asker]

Something to fall asleep to.. to pass the time.. and you might change how I view the world or inspire me.. I could go on..

[Opinion Owner]

May I ask where you’re from?

[Asker]

No you may not.

[Asker]

Maybe in a private message…

[Opinion Owner]

You still there

[Asker]

Did you just message me?

[Opinion Owner]

Yes I did

[Asker]

You’ve been writing anonymously for over a year.. :(

[Opinion Owner]

Lol ok. Why the sad face?

[Asker]

I’ll tell you privately. I’m a very private person sometimes.

[Opinion Owner]

Ok. I’ll be waiting

[Danny_dan92]

The point of GAP insurance is so that if in the event you get in a wreck where the car is deemed a total loss.


You won’t have to pay the remaining amount of what you owe on the vehicle nor will your insurance company. Even if you’re at fault.

[Asker]

So is that something separate I have to get? Or do all car insurance companies offer it? If so, that means I’ll have to pay more a month, right?

[Danny_dan92]

I forgot who offers it whether it’s the lien holder, dealership or your own insurance but it’s beneficial. It’ll help you in the event you get in a wreck and the car is totaled

[Danny_dan92]

And yes, like an extra 50-100$ or more depending on the make and model

[Asker]

I vaguely remember my car insurance asked me if the dealership I bought the car from had it. I didn’t think too much about it until my friend told me his story. So I guess since my insurance didn’t offer it to me, that’s something I should have asked about before buying the car, right?

[Danny_dan92]

I think you have to get it when you get the car

[Asker]

Oh. Thanks Hun.. I guess now I know :)

[dustybiker]

It’s legal. They expect people to not know.

[exitseven]

It is not illegal. The car is worth what the market says it is worth. Your friend bought a car that plummetted in value and took out such a long term loan that soon it was not worth when he still owed on it. My son's ex girlfriend did this with a Nissan. It was a real POS. He probably cannot even take the driver of the other car to court to collect the balance because it is not that guy's fault either. He should buy American next time.

[joeldalton]

Yup. It’s legal. Cars are depreciating assets. That’s why it’s not the smartest idea to buy a brand new car. They depreciate instantly as soon as you sign the paperwork.