Gap Insurance

[PRKThomas]

I am picking up my brand-used 2021 Thor Sequence tomorrow and thanks to this forum, found very affordable insurance through recommendations on this site.

I was offered some "supplemental coverage" packages by the dealer, including GAP insurance.

I have never purchased this product and wanted to get input from the forum on whether this is a good "spend" or not?

Thanks!

[BrianCO]

Depends on your loan, your primary insurance and the GAP insurance.
If you financed as much as possible or paid more than the RV is worth, or if the market takes a huge plunge in resale values you might want/consider GAP insurance.
If your primary insurance pays a prorated/reduced amount of the purchase price, and you experience total loss, GAP insurance could help you out there.
Some GAP policies also include deductibles for claims, but I personally have never read one of those polices.

I always weigh the cost of the insurance coverage with the potential benefit and ability of my current financial and personal situation to absorb such an event. Not everything is in $, peace of mind has value as well.

We purchased new and put approx 40% of the purchase price down. I declined GAP insurance. But every transaction and situation is different. It's a lot to consider, and I feel the dealers aren't much help as they just want an additional product add-on.

Congratulations on your new RV!

[avanti]

Originally Posted by PRKThomas

I am picking up my brand-used 2021 Thor Sequence tomorrow and thanks to this forum, found very affordable insurance through recommendations on this site.

I was offered some "supplemental coverage" packages by the dealer, including GAP insurance.

I have never purchased this product and wanted to get input from the forum on whether this is a good "spend" or not?

Thanks!

Are you borrowing money to purchase this rig? If so, is the amount you are borrowing greater than the fair market of the value (which will be less than you are paying, of course)?

If the answer to both questions is "yes", then gap insurance MIGHT make sense. But only if you can't afford to self insure for the relatively small "gap" between your loan amount and FMV. None of this is likely to matter unless you total the vehicle before the gap goes away.

[SteveJ]

Check the pricing with your insurance company, likely a lot cheaper than the dealer, if it's available.

[rowiebowie]

What Steve said ^ ^ ^.

Insurance like this is a money-maker for the dealer.