Gap Insurance?

[bobgeorge]

Hello all,

I'm getting a 2015 RT Limited soon. The dealer I am going through has gap insurance for a fee of $780?

I don't know if I ever buy gap insurance for my cars.

Maybe have a higher rate of getting stolen....so is gap insurance worth it?

I check NADA site. If you can-am is stolen do insurances give you the NADA Low-Retail or Avg-Retail?

Thanks!

[ARtraveler]

My take on Gap insurance is the same for credit life insurance. The last time I was asked about credit life, I told them it was their problem if I died, not mine.

If the company will finance you with a large gap that is only a problem if you get totaled and your insurance company leaves you standing holding the bag. I don't recommend getting into that situation if possible. The insurance is a nice add on for the dealer to get more of your money. The odds that you will need it are slim and none.

Gap insurance does not help you if you want to trade off while you are still upside down.

You have a slick dealer.

[bobgeorge]

My take on Gap insurance is the same for credit life insurance. The last time I was asked about credit life, I told them it was their problem if I died, not mine.

If the company will finance you with a large gap that is only a problem if you get totaled and your insurance company leaves you standing holding the bag. I don't recommend getting into that situation if possible. The insurance is a nice add on for the dealer to get more of your money. The odds that you will need it are slim and none.

Gap insurance does not help you if you want to trade off while you are still upside down.

You have a slick dealer.

I guess insurance is more important if your Spyder gets stolen in the first year or so.

[ARtraveler]

I guess insurance is more important if your Spyder gets stolen in the first year or so.

Actually, we have not heard to much about stolen 's. I do not recall more than 5 posted on here since they came out.

If you have insurance questions, it may be a good idea to have a heart to heart talk with your insurance agent. Some companies are now going with full value replacement in the event of total loss. I do not believe that option would cost you as much as the GAP insurance as part of the financing package through the dealer.

Let us know what you find out.

[BLUEKNIGHT911]

My take on Gap insurance is the same for credit life insurance. The last time I was asked about credit life, I told them it was their problem if I died, not mine.

If the company will finance you with a large gap that is only a problem if you get totaled and your insurance company leaves you standing holding the bag. I don't recommend getting into that situation if possible. The insurance is a nice add on for the dealer to get more of your money. The odds that you will need it are slim and none.

Gap insurance does not help you if you want to trade off while you are still upside down.

You have a slick dealer.

......This dealer sounds like someone to be VERY AFRAID of.......Next they will be trying to sell you undercoating to prevent SALT damage .......................RUN baby Run .......jmho.......Mike

[bobgeorge]

I will add that I am going to finance100% of the price to include taxes.

Although I got a great price....even better than Imotors of Chicago.

Sent from my iPad using Tapatalk HD

[MouthPiece]

Where's Bob???? <smiles>

Chris

[kngfsh27]

When I want insurance, I talk to my insurance agent not my Can-Am dealer.

[jcthorne]

Many insurance companies offer replacement cost coverage on new bikes. Nationwide does and for my bike it was only like $50 a year more. Your dealer is pushing a BIG profit maker on you.

[Bob Denman]

If you're financing 100% ; bite the bullet, and buy the gap coverage.
My reasoning? If that bike got shot out from under you in the first couple of Months; you'd be so far under water on the loan, that you'd be paying for that bike for years!

[IWN2RYD]

Every opinion has different life lessons behind it. I will just toss this out there...

Contact your insurance agent like others have suggested. If your agent is a professional, not just a producing agent (Just says yes sir and write policies all day instead of having relationships with her/his clients), then your agent should be able to tell you the options available to you from various insurance companies...

Every State is different, I recommend the following...

"Progressive as an example"

Purchase the total loss replacement cost. At least (States may vary) for the first three years, if there is a total loss, you get the replacement cost at the time of the loss. And once three years has passed, this policy defaults to agreed value. Reducing the need to even consider GAP.

Not only that, but Progressive provides you replacement cost for "Damage". Like accessories, rims, exhaust ETC. "Most" other insurance companies only provide actual cash value....

Progressive automatically provides "Passenger" coverage. "Many" insurance companies do not offer it, or you have to ask for you policy to be endorsed to provide it.


This was just one example of one carrier. There are quite a few out there...

For cars, most insurance companies offer GAP at a very cheap rate (Value of vehicle changes the cost, but normally I see about $40 a year for the coverage). But if you change insurance companies 18 month later (As an example) you lose that coverage because most insurance companies only offer it when the vehicle is "New".

I personally purchase GAP at the dealer (Normally $450-$600, never the initial $1200 discounted to $900 game they play) for vehicles when I decide to finance. But NEVER on a toy (Spyder, Boat, RV).

[arntufun]

When I want insurance, I talk to my insurance agent not my Can-Am dealer.

They aren't much better..........


You do realize that insurance agents will sell (and tell) you anything to line their own pockets right ??????? Agent is their own made up word for being a salesman. Salesmen try to sell you things, and upselling a policy makes them more money.

Buyer beware...........The only person that looks out for you, is you........
No offence to any insurance salesmen out there.

[Bob Denman]

Curiously enough ;
But... an Agent who actually wants to STAY in business; won't cut their clients' throats just to line their own pockets.
That sort of behavior will ALWAYS catch up to you.

(37 years in the business of providing protection for my clients. )

Although if you're going to include ALL agents in you indictment; you'll be in for a fight over it!

[gypsy_100]

E

"Progressive as an example"

Purchase the total loss replacement cost. At least (States may vary) for the first three years, if there is a total loss, you get the replacement cost at the time of the loss. And once three years has passed, this policy defaults to agreed value. Reducing the need to even consider GAP.

Not only that, but Progressive provides you replacement cost for "Damage". Like accessories, rims, exhaust ETC. "Most" other insurance companies only provide actual cash value....

That's what I did when I got my new 2014. I usually would not consider the extra cost, preferring to self-insure for the depreciation. But with the rapid first-year depreciation on the Spyder, I figured I would go for it and got "total loss" coverage from Progressive for both collision and comprehensive losses. I can't quote the exact amount that cost. It was not cheap but far less than the amount the OP is talking about. And you get to decide each coming year if you want to continue it or not. For the first three years, I believe, as stated above.

[MRH]

Not my business, but...

I would say that if you have to finance a toy, you can't afford it.

And, at the very least, you really can't afford it if you can't put down enough so that you don't end up owing more than the Spyder is worth.

That's at least six months worth of full coverage just to pay a much smaller amount in the event it is totaled or stolen - not a good deal by any measure I can see.

[Bob Denman]

I prefer to not pronounce judgments; on the lifestyles of others...

[MRH]

I prefer to not pronounce judgments; on the lifestyles of others...

Bob,

I have a strong aversion to watching others go through difficult times that could easily have been avoided.

It isn't a judgement, but rather another point of view to consider.

People will do what they will, but when I put up a similar post on another discussion the OP took a step back and decided to wait until he could pay for his bike before he bought it, and I've got to say that I felt extremely good about sharing my views on that.

Please think of my post as indicating what I would do were I in the OP's shoes, even if I didn't word it that way.

[idahospyder1]

I am much in agreement with Bob on this having been a broker for over 20 years... I stopped counting commission dollars many years ago. If you do what is best for your client all of the time, commissions take care of themselves. Every profession has its hacks and the insurance industry is no exception. However, if you seek the advise of a trusted agent on this topic, you may find you can add gap to an existing policy depending upon the carrier for a few bucks and remove it when you are no longer upside down on your loan.

[Bob Denman]

Bob,

I have a strong aversion to watching others go through difficult times that could easily have been avoided.

It isn't a judgement, but rather another point of view to consider.

People will do what they will, but when I put up a similar post on another discussion the OP took a step back and decided to wait until he could pay for his bike before he bought it, and I've got to say that I felt extremely good about sharing my views on that.

Please think of my post as indicating what I would do were I in the OP's shoes, even if I didn't word it that way.

Fair enough! Thanks for the clarification!

[Chupaca]

I have found you need to know your insurance agent personally. This is getting to be rare I see most just get it on line on appoval at signing or refered by. Some stop by the office and deal with a trainee or secretary. There are great agents (established) who will try to get you what you want and show you whats out there. There are new and hungry ones....You know the rest...

I can afford to buy my toys but prefer to use others money. I get great returns form where my money is and usually pay them off if things drop and I am no longer ahead of the game. Because they are financed I have to have full coverage but carry a high deductable keeping the cost low. I also adjust the coverage as the vehicle depreciates.

Insurance is no different than gambling. I see it as gambling on my ability to navigate the unknown out on the open road. I have done well which means I have lost a bundle not only there but in all the insurances one has to carry. Whoa.!! Sorry got long winded...get it if you feel you need it but check what its worth once you leave the showroom....

[Bob Denman]

You're not buying a tangible product; you're buying "Peace of mind".

What is that worth to you?

[pitzerwm]

I have to agree with IWN2RYD & MRH borrowing any money for a toy isn't a wise move, much less 100% on anything, being upside down when you walk out the door can lead to a lot of grief.

GAP insurance IMO is just like fight insurance, even if you don't get screwed by the dealer you're paying a fat premium for a small risk.

[ARtraveler]

RE: Insurance agents

I still believe is having my own insurance agent. I have been with State Farm since my first vehicle in 1965. Lived all over the country, but always found a local agent to take care of my needs.

These days, everything is done by online/computer. It is nice when I have an addition, subtraction, claim, etc., that I can call a person that I know and who knows me and my needs.

I have had accidents and claims over the 50 years I have done business with State Farm. They always took care of me quickly, and my claims were answered fairly.

The statement about letting your local agent handle stuff instead of the Can Am dealer finance guy is a good one. The finance guy is probably working on commission and does not have your personal finances in mind.

I have said in other threads--try to arrange your own financing with a bank instead of letting the dealer do it. Heard of dealers reserve? The dealer tells you the interest rate is 10%. The bank would have given you 7% had you went to them first. The dealer pockets the 3% equivalent of the interest as a commission. You pay the bank 10%. You just got tagged for another 3%.

A 100% finance is putting a lot of money in a dealers pocket on a $30K machine. Ask to see the financing disclosure statement which must be part of the contract. I think you are not going to like the number.

[MouthPiece]

Let me stir the pot a bit. Clark Howard recommends switching insurance companies every two to three years. Competition.

Chris

[jcthorne]

Not my business, but...

I would say that if you have to finance a toy, you can't afford it.

And, at the very least, you really can't afford it if you can't put down enough so that you don't end up owing more than the Spyder is worth.

That's at least six months worth of full coverage just to pay a much smaller amount in the event it is totaled or stolen - not a good deal by any measure I can see.

Not really true. If I am earning around 8.5% average on my investment account and Sheffield is offering 5 year financing at 1.9% why should I take funds from my account to pay for the bike up front?