jojo77

I purchased the car two days ago and declined the gap insurance with the finance manager. I'm picking it up tonight and was wondering if I can still do the Gap insurance. Btw how much is it approximately for a TSX?

Viking

Call your insurer and see if they include the benefits of gap insurance in their regular comprehensive automobile coverage or if they provide it as an additional cost. Dealers may not offer the best rates in gap insurance. Your buying right? because you usually don't have a choice with choosing your gap insurer when leasing.

jojo77

do you guys remember how much it was at the dealer?

slo007

Dumb question: what's GAP insurance?

gfxdave99

Lets say you total your car.

Your cars retail value is per se 25,000
You owe 26,000

In the traditional world of insurance. You eat the $1000 you havent paid off yet.

If you have gap insurance which is a small 2nd policy which if in the occurance your car is totalled you are not responsible for the difference.

This is especially important to have for leased cars since for the first year your payoff will most def be more then retail value.

Anyway, you can also get Gap insurance from your insurnace company vs getting it through the finance company.

Thats once nice thing about leasing through honda finance, they give you free gap insurance.

NightHawk CL9

well i think that the gap insurance doesn't have a set amount when you buy it from the dealer. i know that when i financed the tsx i told them that i have a set amount i am willing to pay in monthly payments, but i told him that i really very much wanted the gap insurance. I was about 4 dollars from my goal. i talked very very nice to him and he ended up giving me the gap insurance still under the total i wanted so i got it for like 300$. i think that it all depends, i don;t think there is a set amount.

Viking

Went through honda finance.

How gap insurance works

Why is an auto gap insurance policy so important?
Because standard comprehensive and collision auto policies only cover your new car's "fair market value". And that can be as little as 80% of what you paid for your car, starting the minute you drive it off the lot.

This means that if you're involved in an auto accident that leaves your new car "totalled", (we all hope this never happens,) you could end up paying off a loan on a car that you can't even drive.

That's where gap insurance comes in.
A gap car insurance policy insures you for the difference between what you owe on your car and what your insurance company says it's worth.

And if you're leasing your car, it's very likely the leasing company will require gap insurance as well.

Gap insurance coverage would also become critical should your car (knock on wood) be stolen. Thieves prefer new cars (who doesn't), and they seek out specific models, which also usually happen to be the most popular models of cars sold. (Honda Accord, Ford Taurus - etc. etc.)

If your car is stolen, the insurance situation is the same as in the case of an at-fault accident on your part: comprehensive insurance will cover the value of the vehicle, but not necessarily the value of the loan that you owe to the bank. You could be stuck paying thousands for a car that's long gone. Add that to the truly disheartening feeling of having your car stolen, and that makes for a really rough time.


Sidebar
Auto gap insurance is not a policy you'll need forever, but for the first few years of ownership, it will give you some driving security and peace of mind. And the best thing about it is that it doesn't cost much. Get the most current gap insurance quote.

Info from this Link

TSX Hokie

If their insurance is anything like their jeans, I would stay away.












I keeeed, I keeeed, I joke wit you.

bigwilliestyle

CGTSX2004

iTrader: (1)

What's wrong with GAP jeans? I'm wearing a pair right now and they seem good to me.

Viking

gfxdave99

Gap is very good insurance...



















FOR ME TO POOP ON!

NightHawk CL9

is that on or IN??

Fibonacci

Rule of Thumb - if an auto dealer is trying to sell you anything - whether it's gap insurance, extended warranty, etc. It generally is highly profitable for the dealer and means you will be spending money you have low probability of recouping.

Especially in the case of owning an Acura, which carries the highest residual value and lowest maintenance costs in its class. Don't just take my word for it - check it out on Edmunds - TSX has the lowest cost of ownership.

I am not an auto dealership owner, I just play one on

tsxhondatuner

GAP on an Acura or Honda is not really needed. they have the best resale value and they hold it quite well.

gfxdave99

Yes but that doesnt mean that you will have a car that is worth more dealer retail then what you owe on the loan / lease for the term of your loan/lease.

Right now edmunds quotes a CG 2004 Non-Navi 6MT with 11k for $21,699 Trade in $22,823 Private party and $24,748 retail.

48mo lease started in February of this year.. Current lease buyout is 25,435.

If i managed to total (drove off a cliff ) the TSX tomorrow I would still have to pay almost a grand out of pocket if Honda Finance didnt automatically give you gap insurance.

tsxhondatuner

ya....true....but we had to put $10k so it wasn't worth it for us cause theres no way we'd owe more than the cars worth.

kbb retail for mine is $28,200. plus all the taxes and mods that are on the car (tint on windows, springs, etc....)

Vans

To answer your original question - yes you can still buy gap insurance. I think you have 30 days or so to buy it. I got mine through the honda dealer for 300 bucks. Don't accept anything less because thats how much you can get it for on the net.

VeniceBeachTSX

Really only makes sense for a lease, or in some other "no money down" situation. So long as you put in a reasonable downpayment, you should be OK without it.

If you can't afford at least 10% down (preferably more), you should really reconsider whether you should own the car. Same true with any asset actually. (Real estate being possibly the only exception, but I have serious problems with it there too.)