Dan198
Senior Member
- Joined
- May 30, 2016
- Threads
- 9
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- 137
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- 52
- Location
- GTA
- Vehicle(s)
- 2011 BMW 335 xDrive, 2010 Audi Q5, 2014 Porsche Boxster S, 2016 Civic EX
I know I'm jumping in late here and want to understand what Gap insurance does as I've never heard of it or maybe it is not available here in Canada. Is the purpose to cover you on any deficit between the insurance payout and the loan owing in the even the car is a write off?
In Ontario, we can add a rider on our insurance called depreciation waiver, and it is offerred for the first two years on the life of a car. So if my negotiated purchase price for a car is $20k and I have a trade in worth $10k (taxes and options included), if the car is totalled during the first two years, the insurance pays me $20k. In this situation, I do not lose the equity of my trade in. The cost of this option is less than $40 a yr so I always opt in on this whenever I buy a new car. Is this option not available in the US?
In Ontario, we can add a rider on our insurance called depreciation waiver, and it is offerred for the first two years on the life of a car. So if my negotiated purchase price for a car is $20k and I have a trade in worth $10k (taxes and options included), if the car is totalled during the first two years, the insurance pays me $20k. In this situation, I do not lose the equity of my trade in. The cost of this option is less than $40 a yr so I always opt in on this whenever I buy a new car. Is this option not available in the US?
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