Refinanced car and lost GAP insurance.... what to do?
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From: State of Jefferson Mountains USA
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https://helpcenter.capitalone360.com...ory=AUTOACCGAP
What is GAP?
GAP is a product that may be sold as insurance or as a debt cancellation contract. GAP may pay towards the remaining balance (subject to certain conditions and varies by provider) after your primary insurance company pays on the claim. GAP products are sold by motor vehicle dealers. Capital One Auto Finance does not sell GAP.
If you have refinanced your loan, check with your provider to see if you still have GAP coverage.
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The thing is, it`s really not that expensive IF you are able to get it from a secondary non dealer source. The dealer offered stuff is generally marked up 100%
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From: Virginia
the dealer will give it back to you? If canceled
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From: Motor City
Bullitt Member
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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.
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.
http://www.allstate.com/auto-insurance/new-car-replacement.aspx
From what I understand if car is a total loss they will give me a check to replace it with another Mustang GT of the current year. It is only for the first three years of owning the car. If it gets totaled next year they pay to replace it with a 2016 etc.. Definitely piece of mind.
Last edited by imeyers302; Dec 23, 2014 at 01:22 PM.
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From what I understand if car is a total loss they will give me a check to replace it with another Mustang GT of the current year. It is only for the first three years of owning the car. If it gets totaled next year they pay to replace it with a 2016 etc.. Definitely piece of mind.
Personally, I see that as notice that you are financing too much of the price of the vehicle. My experience is that if your down payment covers any possible "gap", they won't sell you GAP insurance, anyway.
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No, the place I bought the car only sells it when they sell you the car. Not to say that there arent dealers out there that wont sell a stand alone GAP. Keep in mind this same dealership charges $700 per GAP contract.... and dont forget the finance charges you pay on it. Compare that to what some of the other people are mentioning price point wise and you can see why the dealer isnt the best option.... provided you have options elsewhere
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