You’ve heard of health insurance and homeowners insurance and even pet insurance. What about gap insurance?
No, it’s not coverage for your moderately priced khakis and tasteful sweaters from the mall. It’s for your car. More specifically, for the total value of your car. You may be aware that the moment you drive your car off the dealer lot, it loses roughly 10% of its value you.
And on average, your car will continue to depreciate 15% to 25% each year after that, according to Carfax. But, hey, that’s the cost of car ownership, right? Gap Insurance If anything happens to your car before you have your loan paid off, your comprehensive or collision insurance will replace your ride, right? Not necessarily.
If your car is stolen and not recovered or crashed and declared a total loss, your auto insurance carrier may not wholly make you whole. Instead, they’ll reimburse you for the actual cash value of your car, which, remember, has been losing value since it became your car—less your deductible. Gap Insurance.
Because your car may depreciate faster than your car payments and reduce your loan balance, you still may owe thousands of dollars more than that actual cash value your policy pays out. Gap insurance covers this difference. Gap Insurance.
So you can catch a ride to the dealership, roll home in your brand new replacement ride, and all you’ll be out is your deductible and the time it takes you to reprogram your stereo settings. Esurance estimates you can purchase gap insurance for a few extra bucks a month on your vehicle’s policy or from the dealer for $500 to $1,000. Gap Insurance.
Now, if you own your car outright, gap insurance probably isn’t a great investment for you. Feeling lucky? Then take your chances and go without. But if you want to be on the safe side, then as they say in London, mind the Gap Insurance.
Gap Insurance For Tesla:
So one question I get asked a lot is what kind of car insurance do I have from Tesla and what do I recommend? And most importantly, what do I think about Tesla insurance?
Now this one’s really tough because car insurance depends on so many factors. How much you drive, how bad of a driver you are, how much coverage you need or want, multi-plan discounts. I mean, the list is endless. Gap Insurance.
You also have to take into consideration that Teslas are just going to be more expensive to insure. They’re pretty much like a class three car. They’re on the same price point and repair levels as high-end car manufacturers like Porsche. Gap Insurance.
This means the insurance usually costs much more. Repairs also have to be very specific as you can just go to any body shop and it also costs more to repair and the parts take longer to get. Gap Insurance, I heard people waiting months to get their car fixed. Also, because the car has so much performance and goes fast, it means more potential for car accidents. Gap Insurance.
Now, I hope you guys have never been in a car accident, but today I’m going to go over different car insurance and let you know which insurance is best for your Tesla. Gap Insurance Now, I’m not going to specifically bash car insurance companies because everyone has different experiences for us. Gap Insurance.
We had AAA for a long time, but recently we actually switched to State Farm and we’re happy with both. And with our specific policy details, we tried to keep it as basic as possible and maybe a touch conservative, but overall, nothing crazy to increase our premiums. Gap Insurance.
Now, knock on wood, we’ve never been in a car accident in our Tesla. We have been in fender benders before, in the past with our old cars, and at the time Gap Insurance, I was asking a lot of body shops who were doing my repairs about different car insurances and prices, and repair times.
And they’re the experts because they deal with car insurance companies all the time. And they told me that Teslas are really annoying to fix because they can’t even get the parts to fix them. Gap Insurance. Second, with most car manufacturers, it can be fixed with aftermarket parts that are cheaper. Gap Insurance.
However, for the best quality, you usually want OEM original manufacturer parts. And this is where paying more for car insurance usually pays off. Usually with the cheaper car insurance, they offset that cheap price with lower quality repair parts compared to the higher-end car insurance companies. Gap Insurance.
Does Tesla Offer Gap Insurance:
Also, when you pay more for those high-end car insurance companies, they usually do a great job of escalating your case quicker, decreasing repair times. Gap Insurance. How about you guys? Is anyone out there? Have you guys ever been in an accident with your Tesla?
Let me know in the comments below how long it took to get repaired. The thing with Tesla is you can only go to Tesla-approved body shops, and you can only use original factory Tesla parts. So honestly, it’s a great thing, but I’m not sure how the cheaper insurance companies will fix Teslas. Gap Insurance.
So for my insurance estimator, I’m going to be only talking about the Model Y that I have. I’m not even going to be thinking about more expensive models like the Model X and Model S because of how expensive the rate is.
Now, real quick, when you are signing up for car insurance or adding a Model Y to your policy, make sure when they input the Vin number, they have the correct type listed for your car. Gap Insurance. Like, for me, for some reason, when we were adding our Model X, it kept saying that we had a performance plaid model, but it was just the regular model.
I also know many Model Y owners whose Vin came up as a performance model when it’s just the regular long-range. Again, I’m sure it’s all fixed because the ModelY has been out for some time now, but there’s no reason to be paying more for insurance when you don’t even have the fastest performance models. Gap Insurance.
Now, there are a lot of popular car insurance companies out there. There’s. Jake from State Farm. We are farmers. There’s USAA, Gecko, Progressive Nationwide on your side, Costco Insurance, which my parents have, and now Tesla insurance.
And we know all about the other ones. Those are boring, right? We all want to know about Teslainsurance, so let’s quickly talk about it. First off, Tesla insurance is just so easy to sign up for.
You can do it through the app. You can do it before you even get your Tesla. As long as you have the app, you can go ahead and sign up for all that stuff. You just have to go to your profile and it’s just right there. Get Tesla insurance.
And it’s just so simple to do. It’s very simple compared to all the other car insurance companies out there which makes it very complicated. So just press Next shows you your personal information. You have to enter your license information.
So we’re going to go and do that. Putting my date of birth. Imagine if I didn’t censor this stuff. I get my identity stolen for sure, which has happened. Damn, I’m old.19 years of driving experience. They just ask general questions. We’re just going to say annual mileage. I’m just going to say 30.
You can find out what your estimate is instant. You could do it right now if you wanted to. A lot of these insurance companies have rules, like, you have to stay with them for a certain amount of time. However, with Tesla insurance, it’s literally so easy to do on the app, and you could easily cancel it if you wanted to.
So here it is right here. My premium is $191.28 a month. Here’s my policy coverage that I could edit if I wanted to. So this is like the basic policy coverage that a lot of people have and which is what most people do. And it’s so simple to do that’s it done.
How To Get Tesla Gap Insurance:
So, I mean, signing up for test insurance is so easy.No need to talk to anybody. But again, that kind of is a double-edged sword. So I know Tesla insurance is great and all, but I just want to talk about it and probably why you shouldn’t get it based on the mixed reviews.
However, it’s also nice because it’s through Tesla. So if any accidents do happen, you’ll know, you receive 100% OEM parts and they should take care of you, no problem. Now, I’m not 100% sure on this, but it seems that Tesla insurance isn’t done actually through Tesla but through a third-party insurance company.
Though customer service can be a hit or miss. As you know, I do love Tesla, but their customer service can use some work. From what I hear, if you do have claims, you may not get the best customer service, but based on Reddit, you can kind of see what goes on.
Some people have great experiences, but others do not so much as they take forever to process claims and just don’t even respond back. And honestly, that’s the deal breaker for me. I mean, with Tesla Solar, for instance, we ordered the Tesla Solar.
We couldn’t get a hold of anybody because they automatically canceled our order. And it was just a huge hassle. Even when I got double charged for our Tesla, when we purchased it, again, I couldn’t get ahold of anybody because that’s a pretty serious thing. Eventually, all does work out in the end.
However, I don’t want that stress, especially when you’re already stressed out because you just got into a car accident. But who knows? And another thing is, Tesla insurance is only available in certain states. However, the beauty of Tesla insurance is the rates you get are always cheaper.
I mean, like super cheap. But remember, one thing that insurance companies love to do is kind of draw you in with a super low rate, but based on how many miles you drive and all these other factors, they jack up your prices the next year. So just be careful. Now, a lot of Tesla owners use Tesla insurance, and it makes sense. It makes life easy.
It’s cheap. I mean, some owners were saying they only pay$74 a month for a 2023 Model Y performance model, which is about only $888 a year. That’s crazy. Now, again, prices, even Tesla insurance changes on region and miles driven.
But another huge reason I do not want Tesla insurance is how they adjust their premium and discounts for each drive with something called a safety score. Not only that, they could update and change the parameters of the safety score whenever they want to. And that is another huge deal breaker for me.
Like, for instance, they recently added a section called Late Night Driving on the Safety Score. I mean, I get it makes sense. If you drive anywhere between 10:00 P.m.
And 04:00 A.m., it’s considered unsafe and it’ll affect your safety score. What about those like myself, who are super early morning birds out there who just like to get things done in the morning?
Usually, I’m in bed by 06:00 p.m., I wake up at three, hit the gym, or if we ever go on road trips, we’re out by 230, we’re awake, we drink our coffee, but we get penalized now because we’re driving during those times when there’s the least amount of traffic.
Come on, now. And don’t get me started on that dreaded safety score if you guys don’t know what I’m talking about way back when. In order to get the full self-driving beta that many of us have today, you have to prove your worth in the form of a safety score.
It’s like playing a video game, trying to find the best way to work the system so you don’t get dinged for dumb things like the Ford Collision Warning, hard braking, aggressive turning, and unsafe following. I mean, it was horrible.
If someone cuts you off and you accidentally break really hard, you would get dinged. If you’re following a little bit too closely because someone cuts you off again, you get dinged. And if you get any sort of collision warning, you’re done for. Gap Insurance I mean, we did everything we could to get the best score possible.
We tried to hack the system by trying to be on autopilot the whole time because it doesn’t calculate autopilot into your safety score. Gap Insurance And some people were even trying to do a two-finger reset before they left the car to try to reset it if they ever got a Ford Collision Warning.
But overall, it sucks because you can’t drive like a normal person. You had to drive extremely carefully, and all those factors sum up to a safety score. Gap Insurance And at the time, I think ours was, I think, 98. So we qualified for the full self-driving beta.
I mean, not anyone could download the full self-driving beta if you guys have it. But imagine having that safety score for your car insurance. I can’t do it, man. It’s just too stressful.
Best California Auto Insurance Companies Tesla Gap Insurance:
It does seem like some states, like California, don’t allow driver monitoring to determine your safety score, but it’s just all that knowledge that Tesla has to change your premium each month, that’s scary. Gap Insurance.
Also, if you do choose Tesla insurance, many other insurance companies have other policies like umbrella plans, and you can’t be covered with the.
Those plans if you have different car insurances. Overall, though, it seems that tell insurance is the cheapest around. However, it seems some owners have more difficulty with claims, which can be a huge deal. I definitely pay a little bit more for less hassle. Gap Insurance.
What about you guys with Tesla insurance? Any issues with claims, drop them in the comments below. Now, let’s talk about a big one pay for not only car insurance but also discounts on hotels and their membership.
It also provides free identity theft monitoring and a few other perks. Overall, we didn’t have any regrets with AAA. I mean, their towing system is amazing. We got into a car accident with our old car. They took care of it right away, got OEM parts, and fixed it quickly, no hassles, and no issues, and it was good in the world except for my wallet.
I mean, I’m a normal driver. I didn’t have any tickets or anything. I mean, I did get pulled over once, but we ended up just taking photos instead. Now, again, with AA, we had the multi-policy discount as well as the normal coverage and deductibles.
I mean, nothing crazy. In our first year of owning our 2022 Tesla Model Y, our rates were actually not too bad at 2600 for the year. But then we went on a ton of road trips and drove the Tesla Model Y a lot. And the next year, for some reason, our ModelY insurance jumped to $3,100 for the year.
And that was even before I submitted the mileage confirmation. So they didn’t even know I drove that much. So I asked them why the insurance was so much higher this year, and they told me it was because AAA started classifying the Tesla as a different class of vehicle, which is a higher-end vehicle like Porsche and Mercedes.
So now in order to insure the Tesla, it’s just going to cost more, which kind of sucks. And for the record, to ensure our Model X, they were quoting us $3,400 for the year. So we had to switch out. But again, we wanted a company with great customer service, good claim times, and everything.
Now, other AAA members with Tesla paid around 2650 to 1100, which is a huge price range. And again, prices vary based on where you live, how much you drive, and all that stuff. So in the end, we ended up switching to State Farm, and I knew it wasn’t going to be that much cheaper because State Farm is supposed to have pretty expensive premiums as well.
But again, we were happy to pay a little bit more if it meant less stress. Now, with State Farm, it’s the same thing. We have multi-policy discounts, and normal coverage, and for the Model Y for the year, it will cost us $1,888, which is cheaper than AA, but not much cheaper.
And again, I have friends with Nationwide and Allstate Progressive, and they are all very happy with their car insurance. However, I don’t know anyone who’s actually got into an accident with their Tesla. I just want to say I love the feedback you guys give on my YouTube Community channel as well as Twitter asking about different car insurances.
So I appreciate it and thank you. There are so many charts online on different insurance prices, and again, it always changes. The top insurance companies that I found, however, were USAA, which is only for vets. So thank you for your service. State farm farmers nationwide and geico.
And I also know for the young kids out there who are a little bit younger and you guys have a Tesla, progressive is supposed to be really good for them, and State Farm did rank one of the best in customer service overall. My advice to you guys is to shop around first and see what works for you.
Do you guys value cost over stress? If the cost is huge, consider Tesla insurance. Just be warned that it may not be as smooth sailing as you think, and premiums can easily change month to month based on your driving score.
Tesla Lease Gap Insurance:
our lease is up on our model 3. It was our first Tesla. It was a standard range plus, and we wanted to see how feasible it was now to actually use a fully electric car at that point in 2019. And we were pleasantly surprised. So, needless to say, we’re gonna miss it.
But I know a lot of you guys are interested in possibly leasing a Tesla, and I just wanted to kind of tell you how the return process is. Everyone knows how to sign up for the lease, but no one talks about how to give it back.
So it was pretty simple. What basically happens is, right through the app itself, you can go in and talk about how you want to return your lease. You can extend it out a month or so, but with a Tesla lease on a three or a Y, you cannot buy the vehicle.
You have to give it back. Supposedly, this is due to having their robotaxis being created using these vehicles, but in its current implementation, this has to be given back to the dealer. When you actually go through the app and submit the lease return option, what you’ll be doing is going to receive an email from Tesla.
And that is exactly what happened to us. There were no specialists available in the area, so we had to do it manually. First inconvenience for you right there. Kind of a red flag, but it is what it is. Obviously, we all know how Tesla services, and this is just a branch off of that.
So you get a whole long list, and I will throw it up here for you to look at. As far as what they want pictures of, it is not only to the extent of wanting pictures of the rim to check for damage but also you need to take a quarter to the treading depth of each tire as well.
So, yeah, you can see where it gets a little crazy for you to have to do this as a consumer just to upload and then email back. Obviously, with emails, there are restrictions on file sizes, so you might end up having to send these back in 3456 emails, just depending on your camera’s photo size that you input, and it has to be at full resolution.
I will call that out. Long story short, after that, they will assess the damage or any extra wear and tear on the vehicle not covered, and provide you an estimate. Once that’s done, you can accept it, say okay, or counter, and ask, why is this being charged?
Gap Insurance Tesla Model 3:
They will inform you that they will assign a used vehicle intake specialist, I think that is what they’re called, to your account to have the inspection done on your model 3 or Y.What happens then is they will either send somebody out if they have somebody available, or they will send you an almost predefined checklist manual for you to do it yourself.
Why is that being charged? The traditional cycle of looking to see where you can cut your costs out if they try to branch out and say, you owe $2,000.And that’s exactly what they tried to do for us. We actually had an original invoice, over 2200, I believe, and what they were saying is the whole center console was missing.
It’s like they didn’t get the picture of that. They were saying that they didn’t get a picture of the charging cable needing to be returned or the key fobs. And these were all extra charges, like I said, that you’re able to see here as well. So, again, it was a lot of back and forth. Ultimately, they ended up fixing it all and removing everything. Not warranted or justified there, but it is a call out.
This is one downside without having a physical inspector here to look at the vehicle. One other bit of information that I didn’t see anywhere that I’ve got to let you guys know. If you’re like me, the first thing I do with a new car is tint the windows.
Tesla is the only manufacturer between I’ve had a Mercedes, a BMW, Honda, Civics, and Hyundai, and nobody has ever charged to remove the tint on the windows. So Tesla gave me a bill for $350 in that line item to return the vehicle, to have them remove the tint. Needless to say, I didn’t have that done.
I had it done on my own. But yes, they will charge you if you have a tint on your vehicle. It’s crazy, but it is what it is, right? It is in the terms and conditions, you can’t modify the vehicle. But again, never ever an issue before. It was this time.
Just want to let you guys know then, Long story short, in the end, if any scratch on a rim is over three inches, you will receive a charge there for about, I think it’s 65 or $75 per rim, per damage. So keep that in mind. If you have any scrapes larger than that, you’ll get charged.
So two of the back tires actually had some damage on them. So we’re being billed $150, I believe, on that piece as well. So aside from that, that is all there is there, plus your disposition fee and whatever that is at the time of your arrangement will be due.
Usually, it’s within 30 days. So we’re going to go ahead after that. We accepted that invoice, went into the app, scheduled our drop-off appointment, and they give a good amount of 30-minute windows throughout the week, even on weekends.
Go ahead and select one of those. It will generate your final estimate in the app, I’m assuming, right when the vehicle is actually dropped off and they can physically inspect it and that’s it. Bring your two key cards back. And that’s all she wrote. So I’d like to say it’s a quick and painless process.
It could be, depending on where you live and how regularly they have associates available to come personally and look at your vehicle. But aside from that, keep in mind this is something you’re going to be responsible for. Gap Insurance, Again big deal.
Still going to work out. Okay, but I wanted to let you guys know what to expect if you turn in a lease. That’s all for this one, guys. Gap Insurance Make sure to use our referral code. If you’re looking at picking up another Tesla, they’re going to be changing up the referral program soon.
Or if you’re getting Tesla Solar, get that free $300 check from them as well. Thanks for watching, guys. We’ll catch you in the next one. We’re going all in on our s peace.
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FREQUENTLY ASKED QUESTIONS:
1. What is GAP insurance?
GAP insurance stands for Guaranteed Asset Protection Insurance. GAP insurance bridges the gap between the price you paid for your vehicle at the outset compared with the amount you receive from your insurer as a claims settlement.
In the event of a write-off or theft, your motor insurer will only reimburse you the current market value of the vehicle – not what you paid for it. As a result, you could find yourself in one of the following predicaments as a result of vehicle depreciation:
If you paid for the vehicle in cash…
You could be £000s worse off due to the gap left between what you paid for the vehicle and its market value at the time of a claim due to depreciation.
If you paid for the vehicle using a bank loan or on finance…
You could be left liable to pay any outstanding finance on the vehicle or still have a balance on your loan to pay. This is because vehicles usually depreciate more quickly than the capital is repaid via finance agreements, particularly in the early years.
If your vehicle is on contract hire…
Similar to the scenario above, you’d still be left on the hook to honor your lease agreement and pay the outstanding finance on the vehicle, even if you chose not to receive a replacement vehicle.
2. Do you cover leased vehicles?
Yes, our Lease/Contract Hire GAP policy provides cover for lease vehicles.
3. Why take out GAP insurance? / How would GAP insurance benefit me?
Let’s say you bought a new car for £10,000 and decided to buy Return to Invoice
1. GAP insurance from InsuretheGap rather than the car dealership.
2. Three years on, your car is now worth £6,000 due to depreciation.
3. Your car is stolen and is never recovered.
4. Your motor insurer will only pay £6,000 (current market value) in the settlement, leaving you with a shortfall of £4,000.
5. Your Return to Invoice InsuretheGap policy would reimburse the £4,000 gap for a fraction of the cost you would have been charged by the car dealership.
6. Contribution towards your comprehensive insurance excess – provides £250 as standard
4. How long will it take to settle a claim?
On average our claims are settled within 14 days.
5. What are your minimum and maximum policy terms?
InsuretheGap policies can cover a minimum term of 12 to 60 months depending on your requirements and the type of policy selected. Simply select the length of cover you require when generating a quote to see how the length of cover affects the policy price.