[myfirstm]

Can anyone recommend a third party for GAP insurance? BMW wants 1500 and current car insurance company does not provide. Thanks in advance for any help

[xlover]

loan or lease?
BMWFS leases include it

[Salespunk]

What are you trying to accomplish with the Gap insurance? As someone else said, BMWFS provides it with leases, but if you are buying it is not included.

[myfirstm]

I should've clarified. For a purchase. I'm honestly leaning towards nothing because chances of an accident with a total loss or a theft are probably insanely small.

[jimbethesda]

Originally Posted by myfirstm

I should've clarified. For a purchase. I'm honestly leaning towards nothing because chances of an accident with a total loss or a theft are probably insanely small.

I would add that if you're so concerned about possibly having to come up with 5-15k in the event of being upside down in a loan, you should seriously re-consider this purchase.

Save more of your income, become more financially secure first.

[Ximian]

Originally Posted by jimbethesda

I would add that if you're so concerned about possibly having to come up with 5-15k in the event of being upside down in a loan, you should seriously re-consider this purchase.

Save more of your income, become more financially secure first.

While this is true in general, GAP coverage is fantastic for decreasing the money you lose if your vehicle is a total loss after an accident and depreciation has significantly decreased its value.

I only cover the taxes for new car purchases and finance the rest with GAP through my insurance at $20 per year. After a year or so, I pay off the rest.

[jimbethesda]

Originally Posted by Ximian

While this is true in general, GAP coverage is fantastic for decreasing the money you lose if your vehicle is a total loss after an accident and depreciation has significantly decreased its value.

I only cover the taxes for new car purchases and finance the rest with GAP through my insurance at $20 per year. After a year or so, I pay off the rest.

My point is that if you are looking into insurance to cover a low-probability AND a low cost outcome, I would look deeper into your financial situation.

IMO, insurance should be used for high cost events ($5MM court settlement for killing someone in an auto accident), and not for anything under let’s say $50k. That’s just my opinion and strategy. I have high deductibles, but also high overall coverage. I have a lot of life insurance, but no short-term disability. That’s where I prefer to spend my money.

I’m a car enthusiast myself, so while many people could not justify spending the money required on an M3/M4, I can. BUT, I didn’t buy my first one until I could easily pay for it. Just my $.02

[myfirstm]

Originally Posted by jimbethesda

I would add that if you're so concerned about possibly having to come up with 5-15k in the event of being upside down in a loan, you should seriously re-consider this purchase.

Save more of your income, become more financially secure first.

Wow a lot of speculation going on here regarding someones financial situation that you have ZERO idea of. I was asking because I think the insurance from BMW is a rip off and am certain there is a better route to go and that some members would be able to shed some light with other experiences. I don't think anyone wants to come up with 5-15k but that certainly doesn't mean they're giving me a deal in the finance managers office either.

[jimbethesda]

Originally Posted by myfirstm

Wow a lot of speculation going on here regarding someones financial situation that you have ZERO idea of. I was asking because I think the insurance from BMW is a rip off and am certain there is a better route to go and that some members would be able to shed some light with other experiences. I don't think anyone wants to come up with 5-15k but that certainly doesn't mean they're giving me a deal in the finance managers office either.

Yes, true I don't. Didn't mean any offense. Inquiring about gap insurance is usually a red flag regarding someone's financial situation. Just pointing out that you might want to reconsider this purchase if this is concern of yours.

I'll shut up now.

[myfirstm]

Originally Posted by jimbethesda

Yes, true I don't. Didn't mean any offense. Inquiring about gap insurance is usually a red flag regarding someone's financial situation. Just pointing out that you might want to reconsider this purchase if this is concern of yours.

I'll shut up now.

All good just seemed like the implication was there. Just trying
to cover my bases and not get hosed at the dealership for GAP. Last time when I was in the finance managers office I laughed at him trying to sell me the $3800 wheel and tire package. He thought I was nuts. I'd rather put the money in the market. But these guys dress up in their nice suits, act better than you, and try to scare you into buying stuff. I get it, its their job, but it doesn't mean its the only way to go for the consumer.

[admranger]

Originally Posted by jimbethesda

IMO, insurance should be used for high cost events ($5MM court settlement for killing someone in an auto accident), and not for anything under let’s say $50k. That’s just my opinion and strategy.

Dang, I got insurance on my Latte this morning. I think I'm doing it wrong.

OP: If the dealership is asking $1500, you can bet it cost them 1/2 of that at most. Offer $500.

[jimbethesda]

Originally Posted by admranger

Dang, I got insurance on my Latte this morning. I think I'm doing it wrong.

OP: If the dealership is asking $1500, you can bet it cost them 1/2 of that at most. Offer $500.

Ha ha!

[Bimmr7]

Originally Posted by jimbethesda

My point is that if you are looking into insurance to cover a low-probability AND a low cost outcome, I would look deeper into your financial situation.

IMO, insurance should be used for high cost events ($5MM court settlement for killing someone in an auto accident), and not for anything under let’s say $50k. That’s just my opinion and strategy. I have high deductibles, but also high overall coverage. I have a lot of life insurance, but no short-term disability. That’s where I prefer to spend my money.

I’m a car enthusiast myself, so while many people could not justify spending the money required on an M3/M4, I can. BUT, I didn’t buy my first one until I could easily pay for it. Just my $.02

What are you even talking about? What you said makes absolutely no sense whatsoever. None!!!

[Ximian]

Originally Posted by Bimmr7

What are you even talking about? What you said makes absolutely no sense whatsoever. None!!!

The point that's being made is that you should spend a lot of money protecting yourself from high cost events that have a very low probability of occurring. Do that while not protecting yourself from a liability below 50k, ignoring the fact that the cost of insurance at that value is relatively, proportionally cheap.

It's not a very good point. Gap is wonderful IF YOU GET IT CHEAP. Gap coverage through your car insurance company is <= $20 year. I understand that not every car insurance company offers it, so find a better company.

[jimbethesda]

Originally Posted by Bimmr7

What are you even talking about? What you said makes absolutely no sense whatsoever. None!!!

We'll agree to disagree I guess. My favorite "gap insurance" is to just pay cash for the car. I never have a gap to insure.

Mind the gap

[jimbethesda]

Originally Posted by Ximian

The point that's being made is that you should spend a lot of money protecting yourself from high cost events that have a very low probability of occurring. Do that while not protecting yourself from a liability below 50k, ignoring the fact that the cost of insurance at that value is relatively, proportionally cheap.

It's not a very good point. Gap is wonderful IF YOU GET IT CHEAP. Gap coverage through your car insurance company is <= $20 year. I understand that not every car insurance company offers it, so find a better company.

$20/year? Ok, you got me there. This is a product I've never considered so I admit the ignorance on the price. The numbers being thrown around in other posts were way higher.

[Ximian]

Originally Posted by jimbethesda

$20/year? Ok, you got me there. This is a product I've never considered so I admit the ignorance on the price. The numbers being thrown around in other posts were way higher.

That very high pricing is taking advantage of people who don't know that better pricing exists out there. They charge $600 or $900 for gap coverage whether the car is 15k or 150k. Typical dealership scams.

For those that have been ripped off by overpriced gap coverage, you cancel it for quite some time after purchase and get a pro-rated refund (at least in some states). You can also get a partial refund if the loan is paid off early.

[Jproos]

Originally Posted by jimbethesda

My point is that if you are looking into insurance to cover a low-probability AND a low cost outcome, I would look deeper into your financial situation.

IMO, insurance should be used for high cost events ($5MM court settlement for killing someone in an auto accident), and not for anything under let’s say $50k. That’s just my opinion and strategy. I have high deductibles, but also high overall coverage. I have a lot of life insurance, but no short-term disability. That’s where I prefer to spend my money.

I’m a car enthusiast myself, so while many people could not justify spending the money required on an M3/M4, I can. BUT, I didn’t buy my first one until I could easily pay for it. Just my $.02

You're singing my tune. I've wanted one of these cars since the very first one came out. I have been waiting for the time when it was easily affordable to line up with the need to replace my current car. I'm finally there and lucky me, I'm not dead yet.

[jimbethesda]

Originally Posted by Jproos

You're singing my tune. I've wanted one of these cars since the very first one came out. I have been waiting for the time when it was easily affordable to line up with the need to replace my current car. I'm finally there and lucky me, I'm not dead yet.

Congrats! Most Americans spend more than they should. I could have never in all my imagination come up with products like gap insurance or layaway, yet they exist and are popular.

Don't even get me started on extended warranties! They sell those for everything! Buy a toaster from Best Buy, they ask if you want to add the 3-yr protection plan. For a toaster!

[jimbethesda]

Originally Posted by Ximian

That very high pricing is taking advantage of people who don't know that better pricing exists out there. They charge $600 or $900 for gap coverage whether the car is 15k or 150k. Typical dealership scams.

For those that have been ripped off by overpriced gap coverage, you cancel it for quite some time after purchase and get a pro-rated refund (at least in some states). You can also get a partial refund if the loan is paid off early.

I guess the only gap insurance I know of (because I've never been interested enough to research it) is the dealership scam type. That's where my comment came from. The perspective of someone so concerned about owing more on their car than salvage value in the event of a wreck, that they are willing to spend $500-$1,500 for insurance (and even more since I'm sure the finance manager will be happy to roll it into the loan....creating an even bigger gap). That person (especially if buying a $75-90k car) should really take a hard look at whether they can afford it.

$20/year? Sure, why not. Totally different discussion.