Hey guys I am still waiting for my mini cooper S to arrive. In the meantime someone mentioned Gap insurance. Has anyone on here gotten it and how much does it typically cost? Thanks.
Yes and it's cheap. Good insurance companies will actually include it at not charge, since you'll usually only need it for the first year, or so. At least until the value of your car is greater than the amount of your loan. Which on Mini's is usually sooner than on other cars.
GAP Insurance ...I have used it and would not buy a car without it. I bought a new car and was hit by a tractor trailer before I made my first payment. Needless to say totaled the car. It may seem like a pain to pay it but..when the insurance company tells you your new car is not worth what you just paid for it.....that's where GAP comes into play....Just my 2 cents
Used to be only for leases, because you didn't put any money down and you were never in an equity position. Nowadays, with 100% financing and balloon payments it's a whole nuther financial world out there. If you have some money down on your purchase, I wouldn't think it would be necessary, and I'd take the money you'd pay for the insurance and add it to the down payment. For those who might not know, gap insurance covers the difference between what you car is worth vs what's owed if it get's totaled. Obviously, it's more important when the car is in the early stages of your loan than later. Edit: Emini parts types faster than I do!
+1 Anyone out there over fifty, and are members of AARP, showing my age here :arf:, call "The Hartford". My wife works for a different insurance company and even they could not give us rates as good as them!
MINI Gap Insurance Hi, A MINI dealership will usually try and sell a Return To Invoice type of GAP Insurance and typically charge £399 - £499 for a 3 year policy - because they have huge margins built in. I know this because I worked in a MINI and BMW dealership for 7 years..!! In reality, you can buy an equivalent or better policy than the dealers policy for around £140 for 3 years. If you intend to keep the MINI for more than 3 years you can consider a 4 or 5 year Gap policy. Some fully comprehensive insurer's provide new for old cover for the first 12 months, but fully comprehensive insurer's do not usually include GAP Insurance - which is why you will have difficulty finding one that does! If you have new for old cover in place for the first 12 months you can choose to defer the start date of the GAP policy to start on the vehicle's first birthday (although it is not a good idea to defer the start date by 12 months if you have arranged finance and paid a small or no deposit). Many people are misinformed when it comes to Gap Insurance and assume that it is only available to customers who have arranged finance. This is not the case. Gap Insurance is available and beneficial for cash buyers as well as those who have arranged a finance agreement/loan. The older your MINI gets, the less your fully comprehensive insurer will pay you in the event of a total loss - because cars depreciate in value! As a brief example, if you paid £26k for your MINI Cooper S and 3 years later your MINI is written off, if your fully comprehensive insurer paid you the market value of say £15,600 a Return To Invoice policy will pay the difference between the market value of £15,600 and the original invoice price of £26k - so the Return To Invoice policy pays a 'top up' payment £10,400!! Gap Insurer's also offer Finance & Contract Hire Gap and Vehicle Replacement Gap. I work for a broker who specialises in Gap Insurance and would say that regardless of where you buy the Gap Insurance from - my view is it works. You just need to make sure that you choose the right type of Gap Insurance for your own specific requirements and always check the policy terms as they do vary from one provider to another. I hope this helps and enjoy your MINI Cooper S when it arrives - they are fab cars!!:cornut:
I wonder if it works differently in the UK? I also did F&I although not in a MINI/BMW store and our gap insurance only is to make up the difference between curent market value and payoff on the loan or lease in the event of a total write off of the car. I've never heard of a scheme like you're describing in the US, which is not to say they aren't doing it now, as I've been out of the car sales biddness for a few years now...... Is it accurate to say that even your gap insurance is only used in the event of a write off of the car? I've only totaled one car in my very long driving history, and it was 17 years old at the time so hardly a candidate for this insurance scheme.