This is more of a general question, but how many of you who are financing your G35s bought gap insurance? I'm having trouble understanding it completely. For example, it really only applies if your car gets totaled right? Does gap insurance kick in if your car gets totaled and the insurance company gives you more than what you owe the bank (i.e., you made a down payment). If not, aren't you screwed then anyways?

Thanks!

 

I think the concept is the reverse - if your car gets totaled and the insurance company gives you LESS than you owe, gap insurance kicks in.

I've never done it, but if you're upside down on a loan it might make sense.

 

I know that it is true for the reverse, but I wanted to know if it made sense if I wasn't upside down on the loan. I would just eat the cost myself then right?

 

Gap insurance will insure one for the difference between what one would owe on a vehicle and what an insurance company says it's worth. This insurance is a must for someone who is considering purchasing a new vehicle since a new vehicle depreciates right after it is driven off the dealer's lot.
What does Gap insurance cover? Depending on the policy, Gap insurance usually covers accidents and thefts, but not all policies are the same so one will want to evaluate the coverages being offered before purchasing Gap insurance.


What about my leased car...does it automatically come with Gap insurance? Usually Gap insurance is built into the lease but, again, don’t assume it is since every lease is different.
Can I buy Gap insurance from the dealership? Yes, most dealerships will offer Gap insurance but usually at a high premium. Before one decides to buy additional insurance, in any situation, they should always make sure they are not already covered by their current insurance policies.

How do I know if my insurance company offers Gap insurance? Before one decides to purchase their new vehicle they should check with their current insurance provider about Gap insurance. It may already be built into the premium. If it is not one can usually purchase it for a reasonable additional cost. But, some auto insurers do not offer Gap insurance at all. It this case one should try to first find a Gap insurance policy from another insurer before buying it from the dealer since the dealer's premium may be more expensive.

 

Great info as usual Sedanman. One minor comment on the above - this statement assumes one doesn't put down enough money on the purchase to cover the immediate depreciation. For example, if the car price is $35k and one puts down $10k, you'd assume the resulting $25k balance is less than even the depreciated value of the car (!).

 

Mine was a lease and it did come with it from infiniti at no charge. I didnt know that it didnt come with it if you bought the car. I thought it was a nice thing for them to throw in because it seems that its not necessary for them to do so..

 

The financing I got from Chase through the Infiniti Dealer has it's own gap insurance. This is not for a lease but for a purchase.

 

i didnt get it becuase my loan balance is lower than the kbb OF THE CAR.... theres no gap for there to be a purpose for me to have the gap insurance...