Automotive

Refused Refund of Gap insurance

  • Last Updated:
  • Jul 17th, 2020 11:45 am
Deal Expert
User avatar
May 10, 2005
36455 posts
10770 upvotes
Ottawa
ak1004 wrote: Not exactly.

For example, if your car was total loss after 2 months, you can still owe more than the full price of a new car because of the interest.
But you get it replaced...so you still have a car.
Sr. Member
Mar 13, 2009
713 posts
170 upvotes
Maple
Pete_Coach wrote: But you get it replaced...so you still have a car.
No. In our case, we had OPCF 43 (waiver of appreciation), so the insurance paid to the leasing company the original purchase price, and since the car was 2 years old, our balance was much smaller than the original purchase price because we paid 2+ years for it. But imagine the accident happens 2 months after you get the car. You get it for say 50k, but you owe the leasing company $55k because of the interest. Since you made only 2 payments, you now owe maybe $53-54k, so even if you have OPCF 43 and the insurance pays the full $50k, you still owe money if you don't have gap insurance.

Luckily, I think most leases today come with gap insurance standard from the leasing company, but still worth to check.

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