Gap insurance and total replacement coverage

I have been using some form of Rv for almost 30 years. I have paid cash for every RV and didn't need gap coverage. As far as full replacement coverage, to me it is not worth the extra cost. I have never damaged an RV in my 30 years so I never filed a claim. When I bought my current TT, it was new and the cost of full replacement coverage would have been almost double the cost of my depreciated value coverage. In 30 years, I have NOT PAID the extra coverage and as a result, I saved enough to pay for another new TT with the savings. You decide what your piece of mind is worth, and you pay the insurance bill to cover any loses. I would not be able to afford all of the toys that ZI have if I had to pay for gap and full replacement insurance on all of them.

packnrat wrote:
Who figures what the "gap" is?
and how can we know the amount?

The "gap" is the difference between the actual amount of money you owe your lender, and the "Actual Cash Value" (ie: "book value") your insurance company will pay you if, after an accident, they "total" your RV.

As such, it's constantly changing as you make loan payments and as your RV gets older and depreciates more. I suppose the annual "book" releases might also reflect whether it's now a "buyer's market" or a "seller's market".

I suppose your insurance agent can tell you which "book" the insurance company uses to assign values to rigs they are totaling. He may even have a copy in his office you could consult.

Who figures what the "gap" is?
and how can we know the amount?

pnichols wrote:
Hmmm ... I guess there's something I'm missing.

As I understood it, my Progressive full purchase price replacement coverage would pay me, if totaled, what I paid for the RV originally regardless of it's depreciation over the years.

Wow ... considering how much RVs depreciate ... wouldn't getting full purchase price back years later way more than cover anything left on the original loan amount regardless of how many incidentals were tacked unto the original loan? :h

What model year is your camper? How long have you had it? And how long do you plan to keep it?

According to this site:

https://www.rv-dreams.com/rv-insurance-coverages.html

With most insurance companies, Total Loss Replacement is only for 5 years, at which point it reverts to Purchase Price coverage which, again, for most companies, ends at 10 years, at which point it drops to book value only. (The article says Geico is only 4 years and 7, btw.)

At which point, your $100,000 RV will only fetch a check for $30,000 from the insurance company.

Another point to ponder: What about any expensive mods you've done? If you've got an extensive solar panel system on the roof and a large LiFe4pro battery bank, will it pay to replace them, or only your "base" model?

Gotta read that fine print . . .

Hmmm ... I guess there's something I'm missing.

As I understood it, my Progressive full purchase price replacement coverage would pay me, if totaled, what I paid for the RV originally regardlless of it's depreciation over the years.

Wow ... considering how much RVs depreciate ... wouldn't getting full purchase price back years later way more than cover anything left on the original loan amount regardless of how many incidentals were tacked unto the original loan? :h

It seems some do not understand GAP Insurance.

GAP Insurance really isn't about the value of your RV from the casualty insurance side. It's about the amount of the LOAN over and above the full casualty value of the insured item. Even if you have 100% full replacement value and the casualty insurance company pays you out 100% of the full replacement value, if your loan on that item is upside down, that full value may not even cover the amount of the loan.

Often this happens when a person rolls many extras into the initial loan such as an upside down trade in, taxes, service plans, overprice dealer casualty insurance, etc. When that happens, even if your casualty insurance pays you 100% replacement value, you owe a heck of a lot more on the loan for items that are not valued into the casualty insurance equation. So, that 100% full replacement payment may be enough to get anew RV, but it wont pay off the loan amount you owe.

That is what GAP insurance is about.

Aridon wrote:
Get Gap on your insurance policy not from the dealer. It will pay an extra 25% over the value.

Better than that is to get a full replacement or stated value policy from progressive. No depreciation.

X10 on that!

I've never heard of "gap insurance" before reading this thread ... but it sure sounds like just another gimmick of marginal value as an excuse for taking one's money.

We had full replacement coverage from Progressive for years on our motorhome. I just called them recently to finally lower the stated value so as to save some on our insurance premiums going forward.

d3500ram wrote:
My understanding that in general, lending companies require the purchaser (owner) to buy gap insurance at the owners cost.

never been required on any loan for vehicles I've ever purchased. In fact never even brought up.

I've never bought it since I could afford the risk cost. But it's a personal decision.

Get Gap on your insurance policy not from the dealer. It will pay an extra 25% over the value.

Better than that is to get a full replacement or stated value policy from progressive. No depreciation.

Pay enough down , no gap needed ! It only covers the loan !