Hey everyone, here`s different something for you.

I recently refinanced my `14 because my credit has had night & day improvement and was able to lower the payment $20/mo - and keeping the same amount of payments. However, after the fact, I found out my GAP insurance purchased through the dealership automatically cancelled once the original loan was PIF....... d@mn!

So I hit the internet looking for answers....... Get it from your bank or insurance company! ok......

New loan is with Capital One...... Does not offer
Insurance co... Geico... .does not offer in TX.

Come to find out no insurance company really offers GAP ins in TX ( where you didnt buy the car new while you had a policy in force with them already ) other than Progressive and their 25% of ACV program. I check into that, it wont cover everything... but close.. Give progressive a call..... They offer me a policy with that @ $80 less than what Geico is charging me... Ok sign me up!

Call Geico.... "Yeah I`m cancelling because I can get insured cheaper elswehere". Geico counter offers with a new premium that is $180 per month cheaper than the policy I was cancelling ( and $100 per month cheaper than Progressive ). Turn away an extra $1200 off a year to stay? Never... Sign me up!..... I call Progressive back and cancel them.

So now... I have had $200 a month cut off of my monthly obligations, but I`m still without GAP on an upside down car. I checked the state insurance boards webside and looked at every single company liscensed to sell GAP in TX..... None of them sell directly to the public.

Any options here? Dont get me wrong...and extra $2400 a year to pay off debt will make a dent in the note quick, but I really dont like being "exposed" like this.

 

Set that $2400 in savings and count it as your own GAP. If you don't wreck and don't need to use it, you now have a good chunk more in your (3-6 mo) emergency fund.

 

You should get a refund on the GAP insurance since it was terminated.

 

The dealer won't tell you this... you need to go to them. I really wonder how many people don't do it because they don't realize they can get a good chunk back (prorated). This also applies to tire/wheel protection the dealer may sell...

 

I didnt mention... I have already done the cancellation paperwork. Ive looked high and low, and have come to the conclusion that NOBODY sells GAP as a stand alone product to the general public.... You either have to get it from the dealership when you buy, you lender/credit union that finances the loan ( if they even offer it ), or insure through an insurance company that offers it.... and many of them dont.

Guess I`m going to have to take that refund check and add to it each month and build up my own GAP fund and hope I never have to use it.

 

I just caught that you said your insurance went down $180 a MONTH? Holy hell!! How much are you paying for insurance and why?!?!?!

 

It was a little over 4k a year, its now just a little under 2K for the year. Reasons it was so much.... A ton of vehicles on the policy with "full coverage", several endorsements, an elderly parent on the policy that had more accidents than Evel Knievel, etc.

Why it went down....

Apparently Geico now has a "new program" that I as a long term customer was not a part of.

What I think happened......

Me the decades long customer thats always paid his premiums and made them TONS of money over the years that was given the "hook up" to stay.

What I think will happen.....

Geico will slowly try to re-coup much of that "hook-up" as they think they can as each 6 month re-newal comes up that hopefully wont cause me to look elsewhere again.

 

Holy ****, that insurance blows my mind, that is crazy. I have a new GT500, a fullblown restored '70 Fastback, 2 Explorers and a brand new Accord and my insurance is still less than what you are talking about for one car a GT Mustang.

You must have ****ed up somewhere down the line, that insurance is crazy ****ed up. Nobody in their right mind would pay that unless they had multiple DUI convictions.

 

Any car insurance company worth its weight in mule pee will pay off '100%' for a car they insure. Just saying.........................

 

^^Exactly!!!

 

I'm a licensed agent for esurance. We offer GAP with our auto insurance. Our GAP isn't as good as a stand alone policy since the stand alone will pay out anything and everything that you owe on the loan. Our GAP will go 25% above what the value of the car is.

As far as others thinking you pay a crazy amount for insurance...

TX is a weird state. Dirt cheap if you have no tickets, accidents, and good credit. One ticket and the rates double. Add an accident and now your paying 4x as much. Plus from what you are saying, credit isn't that great either. I've quoted people decent rates and then when I run their credit, the rates double. Nothing changed besides their credit score. Its nuts in TX.

 

Nope. My record is perfect. The only claim ( if you want to call it that ) was a rock chip repair back in 2013. Like I said, the parent I have on my policy has a ton of issues, I live in Texas....where the insurance companies get to write their own rules/rates. Also you missed the "ton of cars" part. Like you, I have several vehicles on the policy.

 

I think you may be right about that. The rate should be higher since my mother has "issues"... and thats just something I have to deal with. But I did have credit issues several years ago, and I`m willing to bet they re-ran the rate without the credit score as to why it suddenly dropped in half. It will be interesting what happens when that re-newal comes up if they keep it there

 

take the extra cash and put it towards the payments. Pay it off sooner.

 

Or buy more guns and ammo.

 

**** silver and gold. I invest in lead and brass.

 

Protection and currency in one investment.

 

I know you just refinanced but State Farm bank offers GAP insurance for free when you re-finance through them. I just lowered my payment by 150 a month with a lower interest rate for the same length of time I had left with Capital One and the GAP insurance was free...

 

Its something I`ll keep in the back of my mind... The 2 Credit Unions Ive gotten memberships with also offer it for peanuts.... On their loans.

I guess the lesson learned here is.....

Refinancing will cancel the dealer sold GAP.. which isnt a big loss because its over priced.

BUT.....

Make sure either your insurance company or lender you go with does offer it because *NOBODY* sells it as a stand alone product to the general public. Apparently the car dealerships will only sell GAP when you buy the car, but not for a refinanced

 

Gap insurance doesn't usually last the life of the loan anyway, my finance company Capital One only offered it for the first two years. Fortunately, a surprise to me, the BOSS is worth more two years after I bought it. That indeed is a first for me!