# Gap insurance **URL:** \ **Category:** Maintenance/Repairs\ **Created:** [March 7, 2009, 9:42pm UTC](https://community.cartalk.com/t/gap-insurance/27436 "2009-03-07T21:42:44Z")\ **Posts on this page:** 10\ **Page:** 1
**Author:** ![gishgirl](https://avatars.discourse-cdn.com/v4/letter/g/d26b3c/32.png) [@gishgirl](https://community.cartalk.com/u/gishgirl)\ **Post date:** [March 7, 2009, 9:42pm UTC](https://community.cartalk.com/t/gap-insurance/27436/1 "2009-03-07T21:42:44Z")
What does gap insurance cover? Is an extended waranntee something you purchase above and beyond the regular insurance? ---
**Author:** ![MrPhil](https://avatars.discourse-cdn.com/v4/letter/m/ecccb3/32.png) [@MrPhil](https://community.cartalk.com/u/MrPhil)\ **Post date:** [March 8, 2009, 1:12am UTC](https://community.cartalk.com/t/gap-insurance/27436/2 "2009-03-08T01:12:59Z")
Regular insurance (comprehensive and collision) would have nothing to do with paying for warranty work. Usually, “gap insurance” (see Medicare Gap Insurance) pays for something that regular insurance won’t pay for, or has a deductible. Of course, a lot of what’s spent on health care could be characterized as “preventative maintenance” rather than “repairs”. What you need to do is find out exactly what this “gap insurance” you’re being offered covers, and then decide if it’s worth the money. It may be a fancy name for an extended warranty (usually not worth it), or it may be something to bring your comprehensive/collision insurance deductible down to $0, or it may be something else. I can’t tell you, as it’s not a “standard” term – you’ll have to find out what you’re being sold. ---
**Author:** ![Joseph\_E\_Meehan](https://sea1.discourse-cdn.com/cartalk/user_avatar/community.cartalk.com/joseph_e_meehan/32/21_2.png) [@Joseph\_E\_Meehan](https://community.cartalk.com/u/Joseph_E_Meehan)\ **Post date:** [March 8, 2009, 1:15am UTC](https://community.cartalk.com/t/gap-insurance/27436/3 "2009-03-08T01:15:38Z")
You need to tell us more. Where did the question come from. Is someone trying to sell you insurance? Generally gap insurance is any insurance policy that provides coverage for problems that are not covered under usual coverage. Extended warranties for cars are coverage for things that happen after the original warranty expires. ``` I would say gap insurance and extended warranties (they are really insurance not a warranty) are two different things. But lets get back to the original question. Tell us more. ``` ---
**Author:** ![03impreza](https://avatars.discourse-cdn.com/v4/letter/0/51bf81/32.png) [@03impreza](https://community.cartalk.com/u/03impreza)\ **Post date:** [March 8, 2009, 1:17am UTC](https://community.cartalk.com/t/gap-insurance/27436/4 "2009-03-08T01:17:17Z")
The OP needs to return to the original thread. i thought the suggestion to look at the landlord’s insurance was a good one. Running an engine a couple of minutes with a large hole in the oil pan can do no good! Even if the engine sounds okay. ---
**Author:** ![jsutter](https://avatars.discourse-cdn.com/v4/letter/j/8e8cbc/32.png) [@jsutter](https://community.cartalk.com/u/jsutter)\ **Post date:** [March 8, 2009, 1:17am UTC](https://community.cartalk.com/t/gap-insurance/27436/5 "2009-03-08T01:17:58Z")
Joseph this all stems from the topic: a dilemna in Ct ---
**Author:** ![Nevada\_City\_Bob](https://avatars.discourse-cdn.com/v4/letter/n/ea666f/32.png) [@Nevada\_City\_Bob](https://community.cartalk.com/u/Nevada_City_Bob)\ **Post date:** [March 8, 2009, 3:18am UTC](https://community.cartalk.com/t/gap-insurance/27436/6 "2009-03-08T03:18:27Z")
Gap insurance covers any remaining amount a borrower may owe after their regular insurance has paid out on a totaled car. Sucks to lose your car in an accident and still owe money on it because the insurance company’s pay out is short. ---
**Author:** ![BustedKnuckles](https://sea1.discourse-cdn.com/cartalk/user_avatar/community.cartalk.com/bustedknuckles/32/25_2.png) [@BustedKnuckles](https://community.cartalk.com/u/BustedKnuckles)\ **Post date:** [March 8, 2009, 8:29am UTC](https://community.cartalk.com/t/gap-insurance/27436/7 "2009-03-08T08:29:32Z")
It happens a lot, because many people put little or no money down on new cars with today’s credit deals. They are upside down on the loan once they drive off the lot, and remain upside down until the car ages to the 2/3 point on the term of the loan (typically 4 years or more), taking depreciation into account. Gap insurance is there to cover the gap if it is totaled, and the regular insurance only covers the actual cash value of the car at the time of the wreck. ---
**Author:** ![thermographer](https://avatars.discourse-cdn.com/v4/letter/t/57b2e6/32.png) [@thermographer](https://community.cartalk.com/u/thermographer)\ **Post date:** [March 8, 2009, 2:14pm UTC](https://community.cartalk.com/t/gap-insurance/27436/8 "2009-03-08T14:14:50Z")
Say you buy a new car for $25,000. Your $3000 upside down on your trade-in so the dealership wiggles it in and you come out with a loan for 28,000. Drive the new car off the lot and it depreciates in a few months 20% give or take and it’s worth $20,000. Total the car and your stuck with $8000 you still owe. That is what gap insurance covers. ---
**Author:** ![meaneyedcatz](https://sea1.discourse-cdn.com/cartalk/user_avatar/community.cartalk.com/meaneyedcatz/32/692_2.png) [@meaneyedcatz](https://community.cartalk.com/u/meaneyedcatz)\ **Post date:** [March 8, 2009, 8:05pm UTC](https://community.cartalk.com/t/gap-insurance/27436/9 "2009-03-08T20:05:09Z")
This is correct. It has nothing to do with Medicare or extended warranties. ---
**Author:** ![thermographer](https://avatars.discourse-cdn.com/v4/letter/t/57b2e6/32.png) [@thermographer](https://community.cartalk.com/u/thermographer)\ **Post date:** [March 9, 2009, 12:54am UTC](https://community.cartalk.com/t/gap-insurance/27436/10 "2009-03-09T00:54:24Z")
You don’t have to buy gap insurance at the dealership. Do some research online. I saved $200 this way.