Just bought a new car (well, new to me) and the dealer kept pushing gap insurance. I get the idea, but is it really necessary here? I mean, with how fast cars depreciate and the crazy cost of living, I’m kinda torn. Anyone here actually needed to use gap insurance in Hawaii, or is it just another add-on that’s not really worth it? Would love to hear some real stories or advice.
Honestly, I’ve always wondered if gap insurance is just a scare tactic. I get that cars lose value fast, but if you put down a decent chunk or your loan isn’t huge, is it really needed? Has anyone actually had their car totaled and been glad they had it?
Has anyone actually had their car totaled and been glad they had it?
I get where you're coming from, but I think it’s not always just a scare tactic. Even if you put down a “decent chunk,” cars can depreciate so fast—especially new ones—that you might still end up upside down on your loan for a while. My neighbor had his SUV totaled six months after buying it, and the insurance payout didn’t even cover what he owed. He was stuck paying off a car he couldn’t drive. Not everyone needs gap insurance, but for some, it’s a real lifesaver.
- Had a similar situation with my last BMW—got rear-ended, car was a total loss, and the insurance payout was way less than what I owed.
- Gap insurance covered the difference, so I didn’t have to eat thousands.
- Honestly, with how fast luxury cars drop in value, it’s worth considering.
- Not saying it’s for everyone, but if you’re financing a pricey ride, it can save you a headache... or two.
I get where you’re coming from about gap insurance, especially with luxury cars. But honestly, I’m a bit skeptical if it’s always necessary for every new car.
That’s true for BMWs or Mercs, but for something like a Honda or Toyota, the depreciation isn’t as brutal. I did the math when I bought my Civic and the gap between what I owed and what it was worth wasn’t huge after the first year. Maybe it’s more of a case-by-case thing? I’d hate to pay for something I don’t really need, but I get why people do it for pricier rides.“with how fast luxury cars drop in value, it’s worth considering.”