Not exactly a new "insurance" thread, but a supplemental:
If my car gets totalled, my plan covers only to the extend of the "blue book" value. Is there a way to have a supplemental to get "replacement" coverage?
I've got Geico, they won't do it. The dealership says it's only available at purchase. Anyone knows anything?
Greatly appreciated.
I guess it all depends with your insurance company. When I got my car from the dealer, they were asking me $$$ (not sure of the amount but it was 3 figures) for gap coverage. Now through my credit union who I got my financing, they were asking $500 for gap. I passed both offers and stuck with my auto insurance company (ESURANCE) who offered it for $10 a year (yes GAP insurance). IMHO, it is another one of the dealers money generating product at the finance department, in addition to the clear coating, etc.
"Gap" Insurance may be the wrong thing to ask for when purchasing a smart.
typically "Gap" Insurance covers the borrower in case of a total loss and the vehicle isn't worth what BOOK value allows. it covers the 'gap' or difference between what is OWED on the vehicle and the BOOK value.
in the case of a smart, the BOOK value should more than exceed that of what is owed, since even used smarts are selling for thousands over the original MSRP/Sticker Price.
what you may need is a 'stated value' policy, in that you tell the insurance company 'i want to cover my Passion for $20,000 (example)" and they would quote you a premium. this is done for many collector cars, where the BOOK value may be, for instance, on a 70 Plymouth Duster 340 only $500 but since it's a collector muscle car in a #2 or 3 condition, it's actual value may be more like $15-20K or more. you sure don't want to collect only $500 if your Duster gets stolen and you're actually out $20 GRAND!
might be something to look into......'collector car' insurance. many times it's cheaper than insurance on an 'every day' car......
"Gap" Insurance may be the wrong thing to ask for when purchasing a smart.
typically "Gap" Insurance covers the borrower incase of a total loss and the vehicle isn't worth what 'book' allows. it covers the 'gap' or difference between what is OWED on the vehicle and the BOOK value.
in the case of a smart, the BOOK value should more than exceed that of what is owed, since even used smarts are selling for thousands over the original MSRP/Sticker Price.
what you may need is a 'stated value' policy, in that you tell the insurance company 'i want to cover my Passion for $20,000 (example)" and they would quote you a premium. this is done for many collector cars, where the BOOK value may be, for instance, on a 70 Plymouth Duster 340 only $500 but since it's a collector muscle car in a #2 or 3 condition, it's actual value may be more like $15-20K or more. you sure don't want to collect only $500 if your Duster gets stolen and you're actually out $20 GRAND!
might be something to look into......'collector car' insurance. many times it's cheaper than insurance on an 'every day' car......
somewhat disagree - ins company is not going to take consumer demand into account in valuing the vehicle. it's going to be an age/mileage/condition equation they apply to all vehicles. in that instance, the smart will be like every car, losing approx 30% of it's value 3 months from purchase. if you did not put down a decent deposit, then you're going to be upside down if the vehicle is totaled.
If the caveman (Geico) won't play find another carrier.
As mentioned, the dealer would love to hook you up with gap as it is just another profit center for him but you should just drive away.
Many insurers will offer a flat rate with each renewal period and you can then drop the coverage when you are no longer upside down (vehicle value versus loan balance).
somewhat disagree - ins company is not going to take consumer demand into account in valuing the vehicle.
not 'exactly' accurate. yes, some insurance companys do just that. as i said, it's an entirely different policy....either a "Stated Value" or "Collector Car" policy.
not all insurance companys offer this. years ago when i had my 71 Challenger R/T 340, i had a "Stated Value" policy on it with Farmers Insurance. the BOOK VALUE on the car, being 20 or so years old, was next to nothing, but my car was insured for $7,500 (worth alot more now, but that's another story). all i had to provide was an 'appraisal' for my car, which i obtained from a local auto appraisal company.
currently, if your smart were to be a total loss, for whatever reason, you have two choices * ; 'reserve' another one and wait 18 months OR go online and buy one at thousands over the Maroney Label. if it's a daily driver, can you do without a car for 18 months? NO! so you're only logical alternative is to pay alot more than you paid for yours. THAT'S why you carry insurance. to 'insure' you don't suffer a loss. if you do, then your insurance company isn't doing their job properly!
P.S. * yes, you do have a 'third' choice....ORPHAN. but just how often do they become available and how many people do you think are in line in front of you? HUNDREDS!
It is important (as illuded to by Jeepster55) to understand that if you FINANCE your smart for $20,000 and it is totaled 6 months after purchase, your insurance compnay will make a payment to your lender in the amount of the then current value of your smart less your deductible (say $15,000). You will then still owe $5,000 (less payments made + interest) to your lender.
GAP insurance will cover that $5,000
GAP does not garentee you will get another smart for the replacement price, only that your loan is covered.
if you paid cash for your smart you will get the value if the car on the day of the accident, NOT the price you paid for it. Only replacement value insurance will replace the smart and then only with a comparable valued smart (in this case 6 months old).
Collectors insurance is an option but most have mileage limits of a few hundred to a few thousand miles max per year, it will not work for a smart unless you do not plan to drive much.
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