Google says, ...

Gap insurance makes sense when your auto loan balance is likely to exceed the actual value of the car. Gap insurance covers the remaining balance on your auto loan if your car is stolen or totaled and your car is worth less than what you owe. In either situation, your collision or comprehensive insurance policies will cover the actual cash value of your vehicle.

So, do you need it, actually if you are well off enough to pay for the car then no. It is another expense the dealership tacked on and will get some money. It is like warranty. You get a car warranty at no expense but they want you to buy extra warranty to boost their profits.

 

My whole thinking was on how much a CRV hybrid generally depreciates. I am looking at 2024 CRV hybrid touring 7000 miles at around 38500. Considering it is a new car with hardly any miles on if anything happens tomorrow wont I be getting the same value as what I paid? Correct me if I am wrong please. And we are planning to do 1100$ payments from August. So after the first 2 months of payment I think I will already be positive.

 

Welcome to the CRVOC forum. Many fine folks here from around the globe.

Click on your avatar in the upper right hand corner, —> Account Settings, —> Vehicle Details. Complete for your vehicle, then hit Save. In this manner, that vital piece of information automatically appears whenever you post.

With 6 generations of the V on the road today, knowing the year & trim level of the vehicle in question helps those asking & those willing to respond.

This might be of some value. Should do comparison shopping with many different insurance brokers to get the best possible rates. Might even check if the product is available on-line.

 

Well, I'm in Texas so for the moment you are also in Texas. $43,600 loan, 5.9% interest, 60 months according to calculator.net is $840.88 monthly. At $1100 it will be far longer than 2-3 months before you are right side up. You'll be paying mostly interest in the beginning although the extra $240 will help. But it will likely be "somethingteen" months to right side up.

Hyannis Honda has among the best prices on Honda extended warranty and service plans. I don't know if they offer GAP or not but it might be worth checking with them. It is a gamble and like all gambling the odds favor the house. But if Hyannis offers your dealer's $850 GAP plan for $5xx it might be worth the gamble. Good luck figuring it out.

 

if you get the GAP Insurance, like I did because there are so many stupid drivers out there, yes it is an expense. but if you pay your vehicle loan off early, you will get some $ back.
for me it was peace of mind due to the huge amount of vehicle accidents these days - no matter how careful you are. also, we only have one vehicle with no backup one incase of accident. and if I've read some posts here correctly, insurance companies total more vehicles than they did 20 yrs ago.

 

Whether you need Gap insurance depends on your situation. If you’ve just bought a new car or you’re leasing one, Gap insurance can be a good safety net. It covers the difference between what your vehicle is worth and what you owe if it gets totaled. I’d say it’s worth considering if you’ve put down a small deposit or if your car's value might drop quickly. You can check out insurancecloud.cо.uk for more details and see if it suits your needs. It’s always better to be safe than sorry.