GAP INSURANCE DO AND DON'T

[Utahjazzman]

Car insurance is always based on ACV, not Replacement Cost, unless you buy that option with a new car purchase. It also has coverage limitations. New Car Replacement can’t be bought with used cars. The closest thing is Liberty Mutual, who offers a 1 year newer valuation on a total loss.

A few companies offer replacement cost on new/almost new cars. Usually it coasts a little extra but will only last for the first year.
Farm Bureau in some states offer replacement cost for up to 5 years.

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[LarryZiegler]

A few companies offer replacement cost on new/almost new cars. Usually it coasts a little extra but will only last for the first year.
Farm Bureau in some states offer replacement cost for up to 5 years.

You also have to be careful with the coverage as some carriers exclude theft from the New Car Replacement coverage perils. When I mentioned Liberty Mutual, my intention was to state that after the replacement cost time frame ends after the specified period of time, the coverage then transfers to an enhancement of using a 1 year newer automobile in the claims valuation process.

 

[ny176]

please correct me if I’m wrong since I’ll be receiving my Bronco soon. I’ll be financing my vehicle and my down payment will exceed 20%(no trade in). It’s safe to say I will not need Gap insurance?

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