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Iraqvet05's avatar
Iraqvet05
Explorer
Nov 21, 2018

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 monthly payment that what is due so we pay off our loans a bit quicker. We use the TT about 25 nights a year so it sits most of the time. Is gap insurance really worth it or is it just something the bank makes money off of? Is total replacement coverage the a substitute for gap insurance? The insurance clauses and coverage terms confuse me at times. BTW, we have insurance thru Progressive.
Seeking Advice
  • DutchmenSport's avatar
    DutchmenSport
    Explorer
    Nov 21, 2018
    Gap pays the difference between the amount the insurance pays when totaled and the amount you owe on your loan. Yes, the longer you pay on the loan, the less there is for gap to pay.

    We purchased a new truck and a new 5er 5his year. Previous car and previous trailer both had gap. Once the vehicles were paid off with the trade, we contacted the original dealerships and we got refunded, pro rated, the remaining balance of the gap. Pay off early and you can get refunded the payment you made, pro rated of course.

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