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GAP insurance

Discussion in '3rd Gen. Tacomas (2016-2023)' started by BizzyBone, Aug 8, 2016.

  1. Aug 8, 2016 at 11:14 AM
    #1
    BizzyBone

    BizzyBone [OP] Well-Known Member

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    Hello TW fellows,

    Silly question, but do you guys buy GAP insurance when purchasing a new vehicle? Asking since Tacoma's hold their value pretty well. And if you do would the dealer be the last place to buy GAP insurance from? What insurance company out there would you recommend if purchasing GAP insurance?

    Thank you,
     
  2. Aug 8, 2016 at 11:16 AM
    #2
    RAT PRODUCTS

    RAT PRODUCTS Well-Known Member

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    Smokin with a smarty.
    Progressive offers it for like $25 every 6 months. They call it loan payoff.
     
    BizzyBone[OP] likes this.
  3. Aug 8, 2016 at 11:16 AM
    #3
    imdav2u

    imdav2u Well-Known Member

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    Mine adds about $3every month to my policy. Travelers ins.
     
    BizzyBone[OP] likes this.
  4. Aug 8, 2016 at 11:25 AM
    #4
    TRD493

    TRD493 Well-Known Member

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    I financed through my credit union and it was about $300. Might have been a little less....it's been a while.
     
    BizzyBone[OP] likes this.
  5. Aug 8, 2016 at 11:37 AM
    #5
    Martymart510

    Martymart510 Well-Known Member

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    I got mine through my credit union it was $500. Toyota wanted $750
     
    BizzyBone[OP] likes this.
  6. Aug 8, 2016 at 11:59 AM
    #6
    imdav2u

    imdav2u Well-Known Member

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    Check with your insurance company, it might be cheaper than financing.
     
  7. Aug 8, 2016 at 12:01 PM
    #7
    VangaSTL

    VangaSTL Well-Known Member

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    You can also buy the gap insurance through the dealership and then cancel it when the gap is paid off.
     
  8. Aug 8, 2016 at 12:01 PM
    #8
    smitty99

    smitty99 I also bought a 4Runner

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    It's like $10 a month extra with USAA. They pay 20% over the market value of the vehicle. So not quite the same as GAP but could be better in some instances???
     
    InsuredToyota likes this.
  9. Aug 8, 2016 at 12:29 PM
    #9
    joetart

    joetart Active Member

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    I have Progressive and it's $5 every 6 months.
     
  10. Aug 8, 2016 at 2:52 PM
    #10
    stevebaz

    stevebaz Well-Known Member

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    I have Farmers and I paid cash for my truck. I wanted first year gap insurance to cover from what the totaled value to actual replacement cost and they would have nothing to do with it. With 10.5% sales tax and extremely high registration rates loss to me in a total accident is allot of cash I loose.
     
  11. Aug 8, 2016 at 3:09 PM
    #11
    AAChaoshand

    AAChaoshand Well-Known Member

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    Never, ever, ever should you ever buy GAP from a dealer. I have insurance through USAA and spend about 10 dollars or so a month despite having it nearly paid off. I'd rather have my vehicle value + 20% paid back to me even if I only owe 1/4 of the loan. Almost all insurance companies can offer a significantly better rate.
     
    smitty99 likes this.
  12. Aug 8, 2016 at 3:09 PM
    #12
    smitty99

    smitty99 I also bought a 4Runner

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    Yeah so you have the same USAA deal as me...
     
  13. Aug 8, 2016 at 5:44 PM
    #13
    hakabotaco

    hakabotaco Well-Known Member

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    Gap is useful in negative equity situations as well. Also, just like everything else at the dealer the price for gap insurance is negotiable. As several have posted, credit union financing typically has the fee much cheaper (my credit union charges $275 rolled into the loan and it will pay 125% value).
     
  14. Aug 8, 2016 at 7:10 PM
    #14
    AAChaoshand

    AAChaoshand Well-Known Member

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    Technically it's 13.00 and my wife's is 18.85 for her Passat TDI but still, way cheaper that route.
     
    smitty99[QUOTED] likes this.
  15. Aug 8, 2016 at 7:11 PM
    #15
    smitty99

    smitty99 I also bought a 4Runner

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    I think if my tacoma ended up a flaming fireball launched off of a large cliff I'd make money at this point...
     
    Rotekk likes this.
  16. Aug 8, 2016 at 7:16 PM
    #16
    runner001

    runner001 Member

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    I would say its worth it especially if you're buying a newer truck. Peace of mind.
     
  17. Aug 8, 2016 at 7:45 PM
    #17
    Go Fish

    Go Fish Well-Known Member

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    Dealer wanted $500. It was $17/year through my insurance company, Amica. I should only need it for a year or two.
     
  18. Aug 8, 2016 at 11:52 PM
    #18
    SchnauzerTaco

    SchnauzerTaco Well-Known Member

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    TRD Pro 4Runner alloy wheels with BFG KO2 265/70R17 tires, OEM exhaust tip, OEM mud flaps, OEM body color mirror caps, Sylvania 194 LED license plate bulbs, Morimoto xb LED fog lights, Morimoto 2stroke LED headlights.
    Dealerships and finance people make a ton of money selling GAP insurance ($199-$1299), warranties ($1000+++), theft protection ($199-$399) with annoying stickers/etchings all over your car, dent/ding/paint/fabric protection ($199-$999), road hazard tire protection ($299-$599), key fob replacement plans ($299-$399), and various windshield sprays. I have even seen antibacterial interior spray treatments I shit you not (pur-drive brand or some BS) for $299. You would be amazed at how many people buy these products, I don't think most people even read their contracts, the finance person just gets them to the payment they want and then sign here, here, here, and here. Most dealer finance people (and ironically service advisors) are 100% commission based on what products you buy from them. They have quotas to meet in terms of %GAP/warranty sold. If you pay cash and don't buy any products they get nothing or maybe a small part of the doc fee (BTW don't argue the doc fee please, really?). Don't feel too bad for them though, good dealership finance guys/gals can make $250k+/year and most people do buy GAP/warranty etc. when they get in front of a good or deceptive sales person.

    As far as GAP insurance if you are not putting money down or worse financing negative equity for 72-84 months it may be worth considering, but don't pay more than $299-$399 for it. Dealer cost for GAP is only $50-$150, most credit unions sell GAP+ for $299-$399 which will pay off your loan and give you $1000 towards a new loan if you total your car. Like I said GAP products cost dealers and credit unions $50-$150 don't let them make a fortune on them at the industry standard rip off rate of $799-$999+. If you are putting money down or financing your Tacoma for 48-60 months or less, the trucks hold their value and you will pay it down faster than depreciation. Hey even putting the $799 you would have paid for GAP towards sales tax/down payment can put you in a better position on the loan. Read the terms of dealer GAP policies as well, some cap payouts to 125% LTV (loan to value) with some only paying out partial deficiency balances etc. GAP claims through the dealer are often declined or require extensive hassle/negotiation and can take weeks to pay off your loan whereas credit union GAP/GAP+ claims can be processed much faster and easier especially if the credit union has your truck loan. BTW Go with credit unions over banks in terms of financing as well because they offer lower rates and exist for the benefit of you their member vs. banks who exist to benefit their shareholders. Also know your credit score and what rate you qualify for, most dealerships will try and mark your rate up to make money on the financing as well (bank offers 1.99% financing, dealership signs you up at 3.99% and takes 75% of the additional interest income up front from the bank as a commission for the loan typically several thousand dollars)

    As far as the various theft/paint/fabric/tire/key protection packages offered by your dealer please don't be a sucker and buy these overpriced fluff items that cost the dealership next to nothing but can add thousands of dollars to your loan. Unfortunately lots of young/elderly/inexperienced buyers go into the finance office excited about their new car and come out exhausted, sign a bunch of things they don't understand, and pay way too much for everything. I don't have anything against the dealerships making money, I just think consumers need to be more informed in these matters as most state laws favor dealerships and not the consumer. Just remember that you don't have to purchase any products in order to qualify for financing, you are able to cancel most products for a pro-rated refund after the fact, and please read everything before you sign it...
     
  19. Aug 9, 2016 at 12:06 AM
    #19
    BGXtobe

    BGXtobe Well-Known Member

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    Definitely recommend getting it I don't understand why people wouldn't get it in the first the first place.

    I got it for under $300 from a credit union
    , Toyota wanted about $795 if you do get it I highly recommend going through a credit union the have the best rates and lower payments compared to regular banks
     
    BizzyBone[OP] likes this.
  20. Aug 9, 2016 at 1:51 AM
    #20
    Avail211

    Avail211 Well-Known Member

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    I bought it for the two new vehicles I've purchased (2012 Xterra and my shiny new 2016 Tacoma). No regrets. It's a cheap 'just in case' during the first few months of ownership IMO. I've had friends that didn't purchase it and ended up paying several thousand bucks to their banks when their shiny new vehicle got totaled within the first 6 months. No thanks! I coughed up the 200ish bucks to USAA (NEVER the dealers outrageous amounts, always get it thru your bank or insurance company).

    If you got a killer deal (several grand under kind of deal) you may not necessarily need it, it's just nice to know if you get totaled the second you drive off the lot, it's covered.
     

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