June 27, 2021

1 min explanation on why GAP Insurance is important

full and audio episodes jeffsterns.com

Let me just clarify what gap is. So when someone takes delivery of a new car or new lease, especially in leasing, I believe the manufacturers are the least companies include gap insurance. Now, it used to be a policy that you always needed to buy. But I would always have gap insurance. If I'm either rolling a lot of negative equity or not making a good down payment, onto a used car and 100% of the time on a new car, you should have gap insurance. And what this means is, is if you leave the dealership Five minutes later, five weeks later, five months later, the car is totaled, meaning wrecked, unrepairable or stolen, unrecoverable. That's what we call a total, they want to pay only what it's worth, which might be 5000 less than you or it might be 15,000 less than you owe, if you financed in tax tag title, maybe a little bit of negative equity from your last car, there's a very good chance so now, you have nothing you have no car and you owe money to pay off the car that's total. This is what gap insurance protects you against. Did I word that right?
Absolutely. That's that's 100 100% and, you know, that's a big hole in the insurance world. You buy insurance to replace the value of the car. At the time. It's it'd be it's deemed a total loss. So that's exactly right, Jeff, it's it's a total it's a total loss scenario


full and audio episodes jeffsterns.com Let me just clarify what gap is. So when someone takes delivery of a new car or new lease, especially in leasing, I believe the manufacturers are the least companies include gap insurance. Now, it used to be a policy that you always needed to buy. But I would always have gap insurance. If I'm either rolling a lot of negative equity or not making a good down payment, onto a used car and 100% of the time on a new car, you should have gap insurance. And what this means is, is if you leave the dealership Five minutes later, five weeks later, five months later, the car is totaled, meaning wrecked, unrepairable or stolen, unrecoverable. That's what we call a total, they want to pay only what it's worth, which might be 5000 less than you or it might be 15,000 less than you owe, if you financed in tax tag title, maybe a little bit of negative equity from your last car, there's a very good chance so now, you have nothing you have no car and you owe money to pay off the car that's total. This is what gap insurance protects you against. Did I word that right? Absolutely. That's that's 100 100% and, you know, that's a big hole in the insurance world. You buy insurance to replace the value of the car. At the time. It's it'd be it's deemed a total loss. So that's exactly right, Jeff, it's it's a total it's a total loss scenario

Transcript

full and audio episodes jeffsterns.com Let me just clarify what gap is. So when someone takes delivery of a new car or new lease, especially in leasing, I believe the manufacturers are the least companies include gap insurance. Now, it used to be a policy that you always needed to buy. But I would always have gap insurance. If I'm either rolling a lot of negative equity or not making a good down payment, onto a used car and 100% of the time on a new car, you should have gap insurance. And what this means is, is if you leave the dealership Five minutes later, five weeks later, five months later, the car is totaled, meaning wrecked, unrepairable or stolen, unrecoverable. That's what we call a total, they want to pay only what it's worth, which might be 5000 less than you or it might be 15,000 less than you owe, if you financed in tax tag title, maybe a little bit of negative equity from your last car, there's a very good chance so now, you have nothing you have no car and you owe money to pay off the car that's total. This is what gap insurance protects you against. Did I word that right? Absolutely. That's that's 100 100% and, you know, that's a big hole in the insurance world. You buy insurance to replace the value of the car. At the time. It's it'd be it's deemed a total loss. So that's exactly right, Jeff, it's it's a total it's a total loss scenario

Vincent Beretta

Vincent Beretta is an international entrepreneur who pioneered vehicle return insurance in 1999 and trade marked it "Walkaway."

WALKAWAY gives people the ability to return their financed or leased vehicles midway through contracts and walk-away from negative equity; the difference between what is owing vs the actual cash value (depreciated value) of the car. In times of need, consumers relieve stress while protecting credit ratings and savings.

Walkaway is the backbone of five widely recognized national programs and combined with over a thousand independent auto dealers has protected nearly 3.5 million vehicle buyers totaling $125 Billion of consumer finance and lease commitments.

In 2009 Hyundai Motor America was the first manufacturer to license WALKAWAY naming it “Hyundai Assurance” and launched the program in the depths of the 2008-2011 financial crisis. "Buy any new Hyundai - lose your income - return your car." The campaign went on to win multiple advertising awards and "Assurance" is still recognized as the most effective automotive sales incentive in history.

Other key clients have included Kia Canada, Kia Australia, TD Bank and most recently American Risk Services with Ford Credit USA. Retail premium sales have topped $700M million world-wide.

Vince is a keen follower of consumerism and consumer debt and how it affects us individually and as a society, he lives in Toronto with his wife Miranda and two children.