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
1. Determine what happens if you pick up the trailer and within a month, something freaky happens and it is totaled. What will the dollar difference be between insurance value and what you owe on it? Then, can you afford to pay off that difference? Do you want to risk not having a trailer for a while during the time you have to make payments on a trailer you no longer have? Answer those questions (to yourself) and then you will know whether you want to pay for gap insurance.
2. As mentioned above, check to see what happens if you want to cancel gap insurance because you have paid off enough of the principal that you no longer need gap insurance i.e. insurance pay off will cover balance of loan.
3. Consider making sure in the future that you have enough cash down to avoid needing gap insurance. I'm not against gap insurance as there is a time and place for it. It's comparable to having to pay mortgage insurance. It's best not to have to do it, but sometimes, it's what you have to do.
And, good luck with the new trailer and enjoy!! I'm getting on the older side and can only say, time flies by, so enjoy camping/traveling time as much as you can!!
2. As mentioned above, check to see what happens if you want to cancel gap insurance because you have paid off enough of the principal that you no longer need gap insurance i.e. insurance pay off will cover balance of loan.
3. Consider making sure in the future that you have enough cash down to avoid needing gap insurance. I'm not against gap insurance as there is a time and place for it. It's comparable to having to pay mortgage insurance. It's best not to have to do it, but sometimes, it's what you have to do.
And, good luck with the new trailer and enjoy!! I'm getting on the older side and can only say, time flies by, so enjoy camping/traveling time as much as you can!!
