GAP Insurance?

[#27]

I've had my bike two months now and called the dealership today to seeif I could add GAP insurance for the loan difference. She "pulled some strings" (because it's suppposed to be sold at the point of sale date, so they know the exact condition of the bike) and said I could swing by today to make sure the bike wasn;t wrecked and add it for $599.
I agreed to come by and pay/let them inspect, but then started thinking.....

Mine's a 07 left over, they wanted $6899. I got it to $6k even, so with Icon helmet,Cortech Jacket & gloves, plus regi, fees,blah,blah..... (set-up, etc) it came to $92xx.
Bike has 800 miles on it right now......figure the blue book would be around 5k(????) right now. (factoring depreciation)
So....I'm paying $599 to protect 4 grand? doesn't seem worth it, especially when they need the $599 payment right now. Seemed I'd be better going in the hole and making a big principle payment, no?

Opinions? I already thanked her and declined to take it, so it's done.....but just curious....

 

[h2o_boy]

I've been told by several experienced riders that there are 2 types of people that ride. Those who have wrecked and those who will.

Sounds to me like you shoulda got the gap.

 

[madmanmaigret]

Insurance (to cover the bike, not you medical bills) is one of those things that if you buy it you will never need it. But if you don't get it you will need it. So if you can afford to buy the bike straight up with cash in your bank account then it is no big deal but if you cant afford to replace it and suck at saving..... insurance is the way to go.

 

[#27]

I've been told by several experienced riders that there are 2 types of people that ride. Those who have wrecked and those who will.

Sounds to me like you shoulda got the gap.

Fair enough, do you have any experience with making a claim with GAP insurance in the event of an accident, or know anyone who has it....is $600 the going rate, does it really pay...etc?

 

[madmanmaigret]

Fair enough, do you have any experience with making a claim with GAP insurance in the event of an accident, or know anyone who has it....is $600 the going rate, does it really pay...etc?

I am sure if/when you get your paperwork it will have the info on who to call/write.

 

[blitzcraig]

they tried to get me on the gap insurance, but i didn't see the point. it was $500, and it covers the difference (as it was explained to me) between what the "true" value of the bike is vs. what the insurance company says it is. so, if blue book value is $6000 and you waste the bike, and perhaps it was FUBAR, and the insurance company says it (was) worth $4000, then the gap kicks in and you get $6000 for the bike, but it has cost you $500. so i guess you have to weigh the chances that the insurance company would do something like that to you, and if the delta is going to be more than $500, as in an amount that would make getting the gap worthwhile. hope that's clear (and that it was explained to me properly). to me, $500 was not worth the gamble. seems like a scam to me that they are trying to scare you into thinking that the insurance company would try to pull something like that. unless someone has had such an experience?

 

[madmanmaigret]

If you don't have insurance, the GAP is much bigger :thumbup:

 

[dark_isz]

..........

 

[h2o_boy]

I don't know if it's different for bikes or not, but we got GAP insurance on my girlfriends car. The GAP insuarance is not to cover the difference between the bluebook value and what the insurance co will pay (?) The GAP insurance is to cover the difference between the value of the car, and what you owe on the car. It is only handy when you owe more than the vehicle is worth. If you put a large down payment, it is usually not necessary.

If, as you say, you financed 9200, with no money down, and your bike was totaled today, insurance would cover the Fair Market Value, 5000, and GAP, if you had it, would cover the difference, 4200. Not bad for $500.

Without GAP, the bank will expect to collect the 4200 from you.

This is my understanding of GAP insurance also.
I have never been upside down in a vehicle so I've never needed the GAP.

 

[GastonJ]

I took GAP when I bought mine. Cost me around £300, so around $500 by the looks of it. As I understand it at any time in the next 2.5 years should my bike be written off I will get the insurance and the GAP covers the difference between what the insurance company pays and the cost of a new FZ6.

I do think it's a good deal tbh and in the worst case will be better than me paying out of my own pocket for something I don't have.

 

[FZ1inNH]

I paid cash for my bike so no GAP needed. However, I have used GAP on an auto before. Well worth it. If you financed 100% of the bike and are making minimum payments, then this is a wise thing to do. If you owe about what NADA states the bike is worth, then it's not a good deal. If you owe about $600 more than the NADA value, I'd put this toward the principal and start paying a bit extra each month to keep the value and the principle in the positive figures in your favor. :thumbup:

 

[Hellgate]

$600 YIKES! I paid about $325 for my Sierra truck a year ago.

 

[Imperitas]

I don't know if it's different for bikes or not, but we got GAP insurance on my girlfriends car. The GAP insuarance is not to cover the difference between the bluebook value and what the insurance co will pay (?) The GAP insurance is to cover the difference between the value of the car, and what you owe on the car. It is only handy when you owe more than the vehicle is worth. If you put a large down payment, it is usually not necessary.

If, as you say, you financed 9200, with no money down, and your bike was totaled today, insurance would cover the Fair Market Value, 5000, and GAP, if you had it, would cover the difference, 4200. Not bad for $500.

Without GAP, the bank will expect to collect the 4200 from you.

This is exactly how GAP works. However, there are a lot of things it won't cover. Late payment fees, rolloever, and the gap is not for your gear and extras, it's for the bike. Sometimes the GAP policy will have a limit it will pay upto. There are all types of exclusions. You really have to know the policy.

You paid WAY too much for the bike, btw. You would definately be up the creek if you totaled it in the next 1-2 years.

 

[Jessie B]

Oh my gosh, now i'm scarred. I'm the kid that just totaled my FZ6. My primary insurance company just today came out to take pictures, and I received my claims packet in the mail yesterday. I am really depending on my gap insurance to cover the, well, gap between what I owe and what it (the bike) was worth at the time of the accident. If it doesn't I'm going to be in deep dookey.

 

[#27]

I don't know if it's different for bikes or not, but we got GAP insurance on my girlfriends car. The GAP insuarance is not to cover the difference between the bluebook value and what the insurance co will pay (?) The GAP insurance is to cover the difference between the value of the car, and what you owe on the car. It is only handy when you owe more than the vehicle is worth. If you put a large down payment, it is usually not necessary.

If, as you say, you financed 9200, with no money down, and your bike was totaled today, insurance would cover the Fair Market Value, 5000, and GAP, if you had it, would cover the difference, 4200. Not bad for $500.

Without GAP, the bank will expect to collect the 4200 from you.

Yes, this is the correct definition of GAP.....I suppose it's a risk like anything else and depends on how soon I can/hoep to make a major payment against the principal

 

[#27]

You paid WAY too much for the bike, btw. You would definately be up the creek if you totaled it in the next 1-2 years.

Why do you say that.....I feel like I got hiested on the fees and sh!t, but 6k seemed fair?

 

[#27]

I feel like I really Fvcked up by the way by telling her no thanks. I might call tomorrow and beg to have it added and just pay the 6 bills. :spank:

 

[h2o_boy]

Why do you say that.....I feel like I got hiested on the fees and sh!t, but 6k seemed fair?

6k for a new 07 bike doesn't seem out line to me. But 92XX out the door seems like you got raped....without lube.....and they threw sand in there...:spank:

I bought an 06 with 5k miles from a dealer here in Or. I bought jacket, helmet, gloves, pants and battery tender. After title and reg fees and gear I walked out paying $5100. :rockon:
All that gear is dead now and the bike by anyone elses standards would be totalled, But that just gave me a reason to go nekid

On a car I wouldn't be terribly worried about GAP, but bikes seem to get totalled way easier and more often.

 

[dobbeusaf]

6k for a new 07 bike doesn't seem out line to me. But 92XX out the door seems like you got raped....without lube.....and they threw sand in there...:spank:

I bought an 06 with 5k miles from a dealer here in Or. I bought jacket, helmet, gloves, pants and battery tender. After title and reg fees and gear I walked out paying $5100. :rockon:
All that gear is dead now and the bike by anyone elses standards would be totalled, But that just gave me a reason to go nekid

On a car I wouldn't be terribly worried about GAP, but bikes seem to get totalled way easier and more often.

I agree with you on that. I just picked up an 2007 with 6,000 miles for $5,000. Registration is only $147. gear maybe another $1,000. So all together $6,200. I got an otd price from a dealer for a 2006 with 2,000 miles for $5,300. Both these bikes aren't even broken in yet imo. So why pay so much more for a new bike? Denfinately have to have GAP insurance with such a huge difference from what is owed and what the bike is worth.

 

[Jessie B]

Ok, I went into the bank to see if i could stop making payments on my totaled bike while the insurance company sorted everything out (and I can't) and here is what i found out about gap insurance.

My insurance company is going to cover about $6000 for the depreciated value of my 2008 FZ6. I still owe $9100. So gap would need to cover the $3100 difference (or whatever amount was left after I keep making $200 monthly payments) What the bank told me, in not so many words, is that gap insurance is insurance that basically is there to cover their buts on the existing amount of the loan. I told her (the bank rep) that the loan was not only for the bike, but gear and a service package and tax/title/fees, the $500 for the gap insurance itself, and whatever else I got at the time. She said that it didn't matter what the loan was for, a loan is a loan to the bank, and the gap insurance exists to make sure the loan gets paid off, not just a bike.
She said she has seen their gap insurance company completely cover the cost of vehicles when insurance refused to pay for whatever reason.

Let me tell you, that was a $3000 load off my mind.

hope that helped