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How much did you pay for GAP insurance?

Discussion in 'General 4Runner Talk' started by taco_runner, Aug 8, 2020.

  1. Aug 8, 2020 at 10:16 AM
    #1
    taco_runner

    taco_runner [OP] New Member

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    Did you purchase GAP insurance along with your 4Runner? If so, how much did you pay?

    Thanks
     
  2. Aug 8, 2020 at 10:19 AM
    #2
    fajitas21

    fajitas21 New Member

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    Yes, they wanted $1000, i talked them down to $700, but then paid like $10k off the 4Runner, so I cancelled it and they prorated me back $625.

    So I'd say $700 is a good price, might be able to go cheaper, but if you get "black" on it, consider cancelling, and they will refund you the unused portion (typically by figuring loan duration divided by price to get a monthly rate of depreciation...or something like that).
     
  3. Aug 8, 2020 at 10:24 AM
    #3
    MAXIM

    MAXIM New Member

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    According to Consumer Report, you are wasting your money. I tend to agree with them.
     
  4. Aug 8, 2020 at 10:26 AM
    #4
    S.A. 4runner

    S.A. 4runner New Member

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    4runners don't deprecated like other cars. Its a waste of money.
     
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  5. Aug 8, 2020 at 10:34 AM
    #5
    PVT Pablo

    PVT Pablo

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    I declined GAP. Didn't think it was necessary on a 4Runner.

    I also paid a $15,000 down payment so there's that too haha
     
  6. Aug 8, 2020 at 11:11 AM
    #6
    Mtbpsych

    Mtbpsych New Member

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    Unless you’re financing for the total price of the truck, no it’s a waste and even then it can be a waste of money when you can just apply that towards the price of the truck as well. You have your standard vehicle insurance for a reason.
     
  7. Aug 8, 2020 at 11:22 AM
    #7
    ForRun

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    Waste. Insurance has more lawyers to screw us out of any money.
     
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  8. Aug 8, 2020 at 11:45 AM
    #8
    Area52

    Area52 New Member

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    I had a 2018 and financed all it of as well as some negative equity from a Ford Explorer. 5 months later I was t-boned by a suburban running a red light. 4Runner rolled 2x and was obviously totaled. I did not get the gap insurance from the dealer BUT I did have it as a rider to my insurance. On my insurance it’s minimal cost and am super glad I had it. That settled the entire balance of the loan. My 2020 I bought I put a lot down this time so I do not carry GAP on this one. So I agree with the above, if you finance all or most of the cost then I would recommend it. You could be the safest driver out there but you never know who’s going to crash into you.
     
    Thatbassguy and taco_runner[OP] like this.
  9. Aug 8, 2020 at 11:52 AM
    #9
    fajitas21

    fajitas21 New Member

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    To those saying decline for resale I understand, but that's not what GAP is for. If you owe more than the vehicle is worth, that's what GAP is for.

    Also, a friend bought a 2017 Camry after rolling like $7k upside from a previous vehicle into the purchase. I thought buying the vehicle with that much negative equity was a bad idea, and informed them to purchase GAP.

    A month later Hurricane Harvey flooded the vehicle. Total loss.

    It paid the entire balance, including all the negative equity from the previous vehicle.

    So GAP has a purpose, it's not for resale, as you'll outpace that if you own the vehicle for more than about 2 - 3 years. It's the time in between, especially if you're not solvent on the vehicle due to negative equity.
     
  10. Aug 8, 2020 at 2:51 PM
    #10
    MeefZah

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    Agree about GAP in the two circumstances of having negative equity on a trade, and/or financing total cost of vehicle.

    If you owe significantly less than it's worth then there's no point to it.

    I disagree though that a 4R holds its value so well that GAP is universally unnecessary. You can owe "what it's worth" but insurance can still fuck you if it gets totaled. While you can argue with insurance and maybe have them make it right eventually, GAP can give you some breathing room if and when your car does get totaled - cause when that happens you are likely going to be in a short term financial bind with a lot of shit swirling around.

    Don't purchase it through dealer though; or if you do, negotiate it down to very little. You can get it after purchase from most lending institutions that carry the loan.
     
  11. Aug 8, 2020 at 3:07 PM
    #11
    Jynarik

    Jynarik I like boobies

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    Don’t buy from dealership. If you’re financing through a credit union or other bank not through Toyota, they offer gap at a fraction. I paid like $300 for my pro
     
  12. Aug 8, 2020 at 3:43 PM
    #12
    fajitas21

    fajitas21 New Member

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    Another place is if you have a Costco membership and the dealership has a deal with them, you instantly get a much better price on GAP, warranties, and the vehicle price.
     
    taco_runner[OP] likes this.
  13. Aug 8, 2020 at 4:53 PM
    #13
    taco_runner

    taco_runner [OP] New Member

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    Hey thank you all for the great information. Too late we got the gap from toyota for 700. But like any other insurance, it's a waste of money until you need it.
     
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  14. Aug 8, 2020 at 7:54 PM
    #14
    DallasTRDPro

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    I got GAP for $500, but I had to roll over $6K from my Rubicon so to me it was worth it. Still hoping to get T-boned so I can use it.
     
  15. Aug 8, 2020 at 8:07 PM
    #15
    Area52

    Area52 New Member

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    Come drive around in Phoenix for a while, it’s only a matter of time then....
     
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  16. Aug 8, 2020 at 8:09 PM
    #16
    DallasTRDPro

    DallasTRDPro New Member

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    I would think it would be easy in Dallas. Its only because I want it to happen it won't.
     
  17. Aug 9, 2020 at 4:50 AM
    #17
    Mohoman

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    I’d read your contract, gap usually doesn’t cover negative equity. I used to be a GAP underwriter. Gap is a safe bet if you purchased a Korean or German made vehicle, Japanese not so much. There is a ton of litigation and I got tired of repeating what GAP does (I handled thousands of Harvey claims.)

    I’m 100% against GAP (unless the depreciation value of the vehicle is terrible or you live in a state with a bunch of uninsured motorists. I’m not an expert but willing to take a look at the OPs contract (I could find it based off the form number so no personal information would be given.)

    cheers!!
     
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  18. Aug 9, 2020 at 4:59 AM
    #18
    DallasTRDPro

    DallasTRDPro New Member

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    My credit union specifically told me it would cover the negative equity. I guess they could have lied just to get the sale.
     
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  19. Aug 9, 2020 at 6:29 AM
    #19
    Mtbpsych

    Mtbpsych New Member

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    from my understanding GAP is specifically there to cover the cost between actual cash value of the car and remaining balance.
    Car is worth 15k, loan balance at 22k and when car is totaled GAP covers the 7k difference.
    And I’d expect a German car to have negative equity way before any Toyota car does, those German cars have crazy deprecation.
     
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  20. Aug 9, 2020 at 6:57 AM
    #20
    MeefZah

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    Mine did, and paid out about $5k difference when my pretty new Civic with an unfortunate amount of negative equity from a poor trade in decision got destroyed in a parking lot by a driver who came off the road. Well worth it in negative equity scenarios. Not disputing your experience but I think more GAP covers that than not.
     
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  21. Aug 9, 2020 at 7:00 AM
    #21
    Mohoman

    Mohoman New Member

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    That’s awesome!! It’s been a few years since I last underwrote however, as most of you probably know that the payout is based on 125-150% NADA or similar market value which is why negative equity usually isn’t covered. The more you know!
     
  22. Aug 9, 2020 at 8:03 AM
    #22
    Mohoman

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    That’s awesome!! I’d proof read your contract to make sure. We had a problem with dealers that would suggest gap did something then, I would have a wonderful time explaining to customers what it actually covered. I hope I am not being too candid here but one reason why I stop working GAP was because of how dishonest the insurance sector is. I became extremely frustrated fixing the mistakes made by large insurance agencies. If you’re a savvy individual (which I know all of you are) then I’m sure you know what you purchased. I just suggest reading your contract especially the numbered or numerical items of coverage (majority of my day was explaining these to customers who were otherwise.) In the long run, hopefully those who have GAP don’t need to use it!
     
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  23. Aug 9, 2020 at 9:00 AM
    #23
    DallasTRDPro

    DallasTRDPro New Member

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    Wait you're saying my credit union might have lied to me?? No way!! I thought all banks were honest.
     
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  24. Aug 9, 2020 at 11:27 AM
    #24
    taco_runner

    taco_runner [OP] New Member

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    Where do I find that number? LOL.. anyway, I can pm you that number later when I reach home.
     
  25. Aug 9, 2020 at 12:23 PM
    #25
    MeefZah

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    Well they work with car dealers and banking institutions, to protect the bank's investment.

    What's that saying... lie with the dogs and get fleas...
     
  26. Aug 9, 2020 at 6:26 PM
    #26
    MattO2786

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    If you roll another loan into your current car loan, GAP will not cover the previous loan amount. In the cases where they have, it means someone screwed up. Also, they will not cover condition adjustments, meaning if insurance reduces the value of your car by $1k because you have a bunch of burn holes, paint chips, and carpet stains, GAP will not cover that $1k.
     
  27. Aug 11, 2020 at 2:39 AM
    #27
    DallasTRDPro

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    I will call my bank today and get a copy of my GAP contract and see what they cover. If they don't cover everything then I will just get a refund.
     
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  28. Aug 11, 2020 at 3:17 AM
    #28
    MeefZah

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    I disagree with this. GAP covers the loan amount owed, not the vehicle. If you have negative equity on a trade, and buy a new car, your previous loan gets paid off and the new loan is for the amount of the new car plus the difference owed on the prior loan. You don't have two different loans; it's one loan for which you have GAP coverage.

    I'm sure there's a cap... but since most institutions will loan 125% + of the value, GAP should at least cover that.

    I'm not arguing your experience, but I'm telling you I've had GAP step in, in just such a situation.
     
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  29. Aug 11, 2020 at 8:20 AM
    #29
    fajitas21

    fajitas21 New Member

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    I think there's 2 points going. One from our experience from another underwriter, and one specifically from the guy who was an underwriter.

    In that case, it's very likely the two underwriters had different policies on this.

    Also, I do believe the 125% - 150% and I bet in my friends case, they were required to put at least SOMETHING down to get it into the upper cap threshold. They probably left that part out because of perceived embarrassment of telling me something like that, suggesting they were WAYYY negative on the loan.
     
  30. Aug 11, 2020 at 8:44 AM
    #30
    DStar920

    DStar920 New Member

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    Good GAP story here... When I was stationed in Albuquerque, a friend of mine had a Ranger that was falling apart, and he was severely upside down on it. He traded it in for a Corolla, taking on huge negative equity, bought GAP insurance. Now before I tell the rest of the story, I should preface that Albuquerque has/had a huge problem with people running red arrows in turning lanes. So after buying this Corolla, a few weeks later, he decides to drive around with a mouthpiece and low and behold he gets into a collision with a Jaguar driven by the wife of a dentist. She tried to run the red arrow and he timed it perfectly. Funny thing was, she tried to say it was his fault and he planned it because he had a mouth piece. Judge just looked at her as the video of her running the red arrow plays in the back ground. Went back six weeks later and got a new Tacoma.
     
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