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guys - is this a good price? $250 for gap insurance administered by SWBC for the 5 year term. It's for a new odyssey worth 34k

Thx

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rated:
Covering what GAP? Definitions are important. Insurance terms and exclusions?

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The gap between the remaining amount of the loan and the value of the vehicle.

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lodak008 said:   It's for a new odyssey worth 34k
How much is the loan?  

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Sounds too cheap compared to my car loan gap insurance on $18000 car purchase five years ago. Get specific details.

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...or better yet, take the $250 and whatever your were about to spend as a down payment, and buy a car you can afford for cash.

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I paid $350 to PenFed (auto loan from PenFed). So this sounds reasonable. I would say, consider only those providers that are also the loan holders.

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Put down enough cash so you don't need GAP insurance.

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woowoo2 said:   Put down enough cash so you don't need GAP insurance.
  Sure, very good idea for folks who have the spare cash!
But, GAP insurance is a very effective tool when the loan outstanding happens to be more than the market value of the car. Usually it's true during the initial 1 to 4 years of the Car. It's a very good peace of mind factor, for a reasonably small ONE-TIME fee. It's not a monthly recurring bill like your regular auto insurance.

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dealgain said:   
woowoo2 said:   Put down enough cash so you don't need GAP insurance.
  Sure, very good idea for folks who have the spare cash!
But, GAP insurance is a very effective tool when the loan outstanding happens to be more than the market value of the car. Usually it's true during the initial 1 to 4 years of the Car. It's a very good peace of mind factor, for a reasonably small ONE-TIME fee. It's not a monthly recurring bill like your regular auto insurance.

  
You could be right regarding a one-time fee the times you have been offered or purchased GAP, but I have never been offered GAP insurance for a one-time fee that low.  I've never purchased it, but when offered has always been either a one-time fee in the thousands, or, since it is sold through the dealer by another company, they include the one-time fee in your financing and you pay monthly payments and interest.  

IMHO, if you feel you need the peace-of-mind, either you shouldn't be purchasing the vehicle you are, or you need to research more FWF until you can afford the vehicle without needing GAP.

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$34k for a minivan

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lodak008 said:   guys - is this a good price? $250 for gap insurance administered by SWBC for the 5 year term. It's for a new odyssey worth 34k

Hey - my sister just purchased this car, not one dealer would come near the price they got from this internet company called carjojo.com. They got like 2500+ off msrp when not one dealer would lower the price by more than 500 dollars.

Thx
  

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buy a used minivan

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dealgain said:   
woowoo2 said:   Put down enough cash so you don't need GAP insurance.
  Sure, very good idea for folks who have the spare cash!
But, GAP insurance is a very effective tool when the loan outstanding happens to be more than the market value of the car. Usually it's true during the initial 1 to 4 years of the Car. It's a very good piece of mind factor, for a reasonably small ONE-TIME fee. It's not a monthly recurring bill like your regular auto insurance.

  It's a very bad piece of mind, unless you're absolutely terrible with money and can't cover the gap.  It's for people who can't absorb a miniscule loss of a few $k, excepting really expensive vehicles with much larger loans.  GAP insurance is really for people who don't have the spare cash, not those who do.  "New" cars are usually covered with OEM parts or full replacement cost if totalled by your car insurance for the first 24 months (YMMY? refer to policy).  A 5 year term with near 0% apr (sub-2% for prime now) means after 2 years it's paid down roughly 40%.  And the market value is probably above 60% at 2 years.   After 3 years, the loan is paid down 60%, and the car value should easily be 40% of purchase price, meaning no gap at all again.

Personally I'd never pay that much to insure such a tiny loss with a low probability of occurring.   Sure, a couple $k would be painful, but really have zero effect on me or my NW.  My brokerage account usually fluctuates by more than that each day.

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snnistle said:     
You could be right regarding a one-time fee the times you have been offered or purchased GAP, but I have never been offered GAP insurance for a one-time fee that low.  I've never purchased it, but when offered has always been either a one-time fee in the thousands, or, since it is sold through the dealer by another company, they include the one-time fee in your financing and you pay monthly payments and interest.  

 

When I cash-out refi'd my 2yr old vehicle (5 years ago.. just finished the loan), it was in that ballpark (~$250-$300?) for a $20k loan on the the 2yr old vehicle. Still turned it down. The largest GAP I would have encountered based on NADA value differences was about ~$3k for a ~years' time in the middle of the loan term.
On further review, the gap was probably Still near zero over that time, because a totaled vehicle would result in an insurance payoff of NADA value Plus TTL.

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