on my new acura tl-s, my dealer tried to sell me GAP insurance for $500 (one time). This covers any additional loan amount that you owe to the bank on top of the depreciated value (which your normal insurance policy will not cover).

Is this insurance worth getting? Does $500 sounds good?

Thanks!

 

Phone your insurance broker or agent. Generally on a new car, if you total it in an accident in the first 2-3 years, there is something called "limited waiver of depreciation" that pays you the origional purchase cost or current price of your vehicle, which ever is less. Some policies have this option for 2 or 3 years at a premium much less than $500.00. Due to the fact most loans are front end loaded, in the last 1 or 2 years of the loan, most of the principal is paid off.

Sounds like another dealer scam.

 

Buy gap insurance through the insurance company and not the dealer. You should be able to purchase it for much less than $500!