Gap insurance and total replacement coverage
We are picking up a new TT in a few days and the dealer asked if I wanted gap insurance. I said no the last time and I'm tempted to say no this time too because my DW typically pays more on out month...
Forum Discussion
I'm not aware of what total replacement coverage on a vehicle is. Sounds like a house insurance term for the contents (replacement value coverage vs cash value coverage).
For vehicles, or RVs toys, classic cars in particular, you either have actual cash value coverage which accounts for depreciation, or stated value coverage where you pay a rate based on a calculated value. The latter is more applicable to "toys" that either don't deprecate or are highly modified and not really quantifiable (you have an ATV that has $10k of performance mods that no insurance agent could understand type of thing.
If you have a stated value policy and it’s for more than you owe, Gap coverage will not pay anything.
For vehicles, or RVs toys, classic cars in particular, you either have actual cash value coverage which accounts for depreciation, or stated value coverage where you pay a rate based on a calculated value. The latter is more applicable to "toys" that either don't deprecate or are highly modified and not really quantifiable (you have an ATV that has $10k of performance mods that no insurance agent could understand type of thing.
If you have a stated value policy and it’s for more than you owe, Gap coverage will not pay anything.
