Is it possible to get GAP insurance after buying a car from the dealership? I’m upside down on my loan because I bought a lemon. When I got the car, I didn’t choose GAP insurance. I don’t even remember if it was offered, or maybe I just forgot. I’ve seen that some insurance companies offer it, but is it better to get it from the dealership? How can I do that if it’s been over a year since I bought the car?
How is the car considered a lemon? Auto insurance won’t cover that, and GAP coverage only applies if the vehicle is totaled in a covered accident. It seems like you should reach out to the dealership or seller to discuss the issue.
I apologize for the confusion. What I meant was that I’m underwater on the loan because we purchased a car that didn’t hold its value, and then we had to roll that loan into the current car, which also isn’t worth what we paid for it. Unfortunately, we really needed a car at the time. Both cars we’ve had turned out to be problematic, which is why I referred to them as “lemons”; we had to get them repaired shortly after buying them from the dealership.
Yes, I understand that GAP would only cover the loan in the event the car is totaled.
Gap insurance typically does not cover negative equity carried over from a previous loan into a new one.
I completely understand that I’d be responsible for the negative equity from my previous loan. I was considering getting gap insurance for my current car loan, as it seems like a better option than having no coverage at all.
What year is your car, and when did you purchase it? If it was a used vehicle, there’s a limited time frame to add gap insurance to your policy. For a brand-new car, I believe you have up to a year, but it depends on the insurance provider.
About a year ago in 2017.
The car is too old to qualify for gap coverage.
What about going through an insurance company?
That’s what I meant. Most insurance companies typically won’t provide coverage for vehicles older than 2 to 3 years, possibly up to 4 years.
GAP insurance from the dealer is typically quite costly, so I recommend obtaining it through an auto insurer instead. Just be sure to review the coverage details, particularly the percentage they will pay in the event of a claim.
I’ll check on that, thank you.
Most auto policies offer the option to purchase gap insurance. You might be able to include it in your current policy, and it is definitely available if you initiate a new auto policy. However, keep in mind that the gap coverage on your auto policy typically has a maximum limit of 125% of the car’s current actual cash value. For instance, if your car’s adjusted value is $10,000, the insurance would cover up to $12,500.