I recently purchased a 2025 Honda CRV EX for $35,000 with a $5,500 down payment. The loan is at 4.9% for 60 months. Should I get gap insurance? Please advise.
Yes, you should get it, but avoid buying it from the dealer. Your car insurance company will likely offer it for less. I only needed gap insurance once, but it saved me a lot of money.
From what I’ve heard, Honda includes gap insurance automatically, but confirm with your dealer. My insurance company (Travelers) doesn’t offer it. Just sharing my experience from New York.
I’m currently debating removing it. I have Progressive, and while they don’t offer traditional gap insurance, they have something that covers up to 25% of the vehicle’s value.
Gap insurance is a scam.
Nash said:
Gap insurance is a scam.
Why do you think so?
Nash said:
Gap insurance is a scam.
Gap insurance covers the difference between the car’s value and what you owe on the loan. If you’ve made a large down payment, the chances of needing it are low, and in that case, it might seem unnecessary. However, if you rolled over a lot of negative equity from a trade-in, it’s definitely worth having. Consider how much you owe compared to the car’s value and decide if the premium is worth it for your situation.