When you go to the car dealership and buy a new auto, they will more than likely offer you gap insurance and they won’t tell you that you can save money on this insurance if you get it through your insurance company. So, in this respect, you could look at this gap insurance offer as a scam.
Gap insurance protects you at full replacement price if you total out your auto in a wreck within a short time after the purchase, while normal insurance does not offer the difference in price drop after you drive a new vehicle off the lot. In other words, the price of the auto goes down in value as soon as you drive it off the lot and your regular full coverage insurance will not cover the full price to replace the vehicle. The gap insurance will cover that extra amount you will need in case of such a tragedy.
Car dealerships are not insurance companies, but they make a profit from you if they can sell you gap insurance, and they sell the gap insurance for more than double the price of your insurance company. All you have to do is call your insurance company.
My wife and I sat in the dealership signing closing papers on her vehicle when the dealer offered us gap insurance for $16 per month. We declined the offer because I knew about the savings tip.
Whenever a company offers you additional products over and above what you are buying, it’s always time to start over and do your homework, no matter how good the deal may sound at the time.
When I got home, I called our insurance company and was able to get gap insurance for $6 per month, for a savings of at least $10 per month over and above what the guy at the dealership was offering.
The other cool thing about this knowledge was that I used my experience to help one of our new employees who had purchased gap insurance from an auto dealer when she bought a new vehicle. She was able to cancel the gap insurance she bought from the dealership and get it for less through her own auto insurance company.
Since I like to help you save a lot of money, here is a link to help you learn all of the best money saving tips for buying new cars from a dealership. Don’t waste your time trying to find videos on Youtube for tips on car buying. You never know what you will get on there.
Be sure to post this link on your Facebook wall to help your friends, and check out my about page to learn more about who I am and why I’m doing everything I possible can to help you save as much money as possible in these tough times that are not going to get much better unless you do something about it.