Smart Guaranteed Asset Protection (GAP)

[Britmck]

Just found out today that my dealer offers GAP! Here's how it is explained on the site.

"We hope it never happens to you, but if your smart fortwo is ever declared a total loss due to a theft, collision or natural disaster, there could be a significant difference between the amount your insurance company will cover and the amount due on your finance contract. Standard comprehensive and collision auto policies only cover your vehicle's 'fair market value' (when permitted by law), which could be far less than the amount you need to pay off your loan. With our guaranteed asset protection (GAP) plan, we'll cover the difference between the amount you owe on your loan and the amount your insurance company will pay in the event your smart fortwo is ever declared a total loss.* We'll even reimburse you for up to $1,000 toward your primary insurance deductible.**"

This sounds like a good idea. I am considering getting this when I make my purchase sometime in November/December. It also was a bit vague on how much this would cost, but my guess is that it may vary for people. Do all US Smart Dealerships offer this?

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[Old smart]

Originally Posted by Britmck

... This sounds like a good idea. I am considering getting this when I make my purchase sometime in November/December. It also was a bit vague on how much this would cost, but my guess is that it may vary for people. Do all US Smart Dealerships offer this? ...

GAP insurance is not a bad idea. I fear that insurance adjusters will be quick to "total" a smart because major repair costs and procedures are still an unknown. I paid a one-time premium of about $100 to Navy Federal C.U., my financer.

[Dave Van]

I got GAP coverage FREE! When I asked my insurance guy about GAP coverage he said if I let him finance my Smart he'd give me GAP coverage free. The loan rate was about the same as the bank and EZ to apply since he had all my info already. I'd check with yours...

[rawlus®]

make a larger down-payment and finance for a shorter period and you don't have to worry about this so much.

[Dave Van]

make a larger down-payment and finance for a shorter period and you don't have to worry about this so much.

Yep! that works....but in todays real world.....2 kids at a major University....etc etc...easier said than done for many! If GAP is available for free and the terms are the same at a traditional bank I think it's smart to find these kind of options!