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
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.
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.
