Gap Insurance Needed - California

[chessking21]

I received my R1T about a month ago in San Diego, CA and I've been trying to obtain gap insurance for it for a few weeks now. I inquired with Rivian, they pointed me to my insurance company, insurance pointed me to my financial institution, financial institution pointed me back to Rivian. No luck as of yet. Does anyone have any recommendations on how to obtain gap insurance?

Thanks!

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[Cavalryscout18]

Sorry but isn’t gap insurance that thing dealers try to sucker you into during the buying process? If you have done your research and find you actually need it, that’s cool. But gap insurance is really only needed if you think the replacement cost of a vehicle will be less than what you owe the bank. If you bought a R1T from Rivian today, chances are you paid way less than market for the truck. If your vehicle was destroyed, the insurance company would be forced to pay for a replacement truck at current prices, which would be significantly more than what you owe your bank.

 

[Christopher]

Many insurance companies don't include or sell gap insurance, which is why they're telling you to go to your lender. Geico sells gap insurance in many states and it's much cheaper than the gap insurance they try to sell at the dealer to rip you off.

I don't understand why you would even want gap insurance? Do you ever think you're going to be upside down on the car?

 

[AxelR]

Although I completely agree that most products offered by a F&I manager are bs (I’ve been one myself). Gap coverage can be pretty useful in case of an accident if your vehicles value is less than what you owe on it.
I’ve had it on most of my vehicles (even the ones retaining good value) as I’ve financed most of them since we had really low interest rates for quite a while.
I get mine directly through my credit union at time of financing. I believe most lenders will sell it to you within the first 30 days of your purchase. It’s usually only 200-300 bucks.

Edit: with the current state of the economy and elevated risk of recession, the current car market might change.

 

[3121]

If you have pre March in pricing I’m not sure why you would need gap insurance. The truck is worth more than you paid, even if you financed 100% of it.

Gap insurance is only needed if you owe more on the loan than the vehicle is worth. Typically this needed when car dealers rolled the negative equity of a trade into the new car loan. So you drove off the lot upside down.

Gap insurance is usually cheapest from your credit union or bank who issued the loan. I can recall a dealer offering it at $1200 and phoning my Credit union who offered the same coverage for $200.

 

[Atlrivian]

Waste of money for pre-March pricing. Your car is currently worth more than you paid for it.

 

[Trekkie]

is it though? have y'all met insurance companies when your car gets wrecked? your car is suddenly worth less than what you paid for it, less than what the market is, and you have to just bend over and take it or hire a lawyer and pay them all the money and still get nothing.

Gap insurance is still really important for a first two years of ownership if you have a loan or a lease. The most I've seen it is a $600 or so fee.

 

[electruck]

is it though? have y'all met insurance companies when your car gets wrecked? your car is suddenly worth less than what you paid for it, less than what the market is, and you have to just bend over and take it or hire a lawyer and pay them all the money and still get nothing.

Gap insurance is still really important for a first two years of ownership if you have a loan or a lease. The most I've seen it is a $600 or so fee.

Really depends on how much you put down. If you finance more than 80% of the purchase price, yeah, you'll probably want gap insurance.

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