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I was 'sold' GAP insurance on the purchase of my new E, last week. I was surprised, especially since it was not a lease. I took it, with the intention of doing research and deciding whether I wanted to keep it (my contract states that I have 30 days to cancel). I just wanted to get any thoughts or input.
 

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Keep it. The first year or so you are upside down. If anything happens then you pay the difference. If your element is written off and they give you 17000 and you owe 20000 thats your lose.
 

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Not sure what they charge but my insurance company offers it, as should yours, as an add on to my insurance at $11 for 6 months. What is your dealer charging?
 

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Gap insurance? My dealer tried selling me this on the financing. I was unaware you could buy it from your insurance agent. I understand gap insurance but the idea seems really screwed up. We pay through the nose on insurance to begin with and then they want to add this? Of course if you do use your insurance because your car is totaled, the next policy you get will be more expensive I bet. A no-win situation either way.
 

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I guess it depends on how much you put down and how much you still owe vs. what the insurance co. will pay on the depreciated value. If you put a big down payment, then maybe you wouldn't need GAP. However, most people don't do that. Someone I work with totaled his car in an accident. He didn't have GAP so he was responsible for the balance of his loan, $6,000, after his insurance payoff. It took him about two years to get out from under that rock. I would recommend it, but I think like many things, you can shop around for the best value.








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As a CPA I recommend it for most people EXCEPT if:

1. You put down a big down payment (25% or more).
2. Your loan is for 3 years or less.

Like everyone else has mentioned, if you didn't do these two things you are upside down in the purchase for quite awhile. And if you went with a 72 month (6 year) loan then you are upside down the first 3 years.

If you can afford the chance, then don't pay for gap insurance. But if losing $4,000 as you drive off the lot and someone smashes into you will cause you serious financial strain then make sure you get gap insurance.
 

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My dealer tried to sell me gap insurance for $500. I thought the cost to benefit ratio was outlandish so I told them to keep it. Unfortunately my insurance company doesn't offer it and I was unable to find anything except for one company on the Internet that seemed real shady. I do think it's a good idea but I just can't seem to find it and I'm unwilling to switch insurance companies after 20 years.
 

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I was also sold a policy for 500.00 but when i found out my own insurance co would add gap to my policy for 5 bucks i quickly cancelled. MY advice is to check with your ins co and see if they offer it.
 
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