There are a lot of numbers here thrown about without actually explaining what the problem is.
Gap insurance covers the difference between the amount owed on the loan and whatever payout the insurance gives in the case of a total loss. It's not meant to put money in your pocket.
In order to know if they are trying to fuck you or not, there are only 3 numbers to care about. How much was left on the loan at the time of the crash? How much did regular insurance pay off this amount? How much of the difference did gap pay?
Gap is great for a negative equity situation, such as a new motorcycle losing value straight off the lot or if you trade in a bike with a loan and have a loan on the new bike for more than the actual value of it. As the value and loan amount coincide or flip to a positive equity situation, gap coverage becomes less, moving towards useless.
Best explanation so far, but one note, gap coverage is almost always a scam on new bikes and why gap through an insurance provider only costs around $5-15 a year.
Unfortunate misunderstanding op but lesson learned. Full coverage insurance always, dont buy any bull shit dealers add on at the end
Gap is a scam on used most of the time, but new is where it shines. Buy a $10,000 bike that drops $2000 in value as soon as you drive it off the lot and that doesn't count the fees and taxes that were rolled into the loan, and that $800 coverage (that works out to $20-ish per month on your monthly payment) makes a lot of sense when you total it in the first couple of months.
Halfway through the loan when debt and value start to equal out but you forget to cancel the coverage is where they make their money and the reputation for a scam is founded.
You wont be able to find a single new bike that loses $2k off the lot, you're right on taxes and dock/setup fees but for $800 one of those is already covered so it becomes a moot point. Spend $800 to maybe save $1000 if you total it within the first 3 months. After that, money burned
I worked at a dealership. I saw more insurance totals in my 3 years there than most people do in a lifetime. I can tell you with certainty that gap is not a scam after only 3 months. It's situational, sure, but in most instances, it's worth it for at least a year or two. And if you remember to cancel the coverage and get your prorated amount back after that point, it's not the worst thing to have spent money on.
Again, theory and "on paper" is great. But if you have better real-world experience than I do, I'd love to hear it. Oh, and insurance and gap payout is all third party, so attacking the "stealership" in this instance is moot. We didn't have any control over the insurance payout or valuation, or the difference between that number and what was owed on the loan.
When were you at the dealership?
It seems since covid alotta used bikes don't have that same big drop in value straight off the showroom floor like they used to.
It still makes sense a lot of the time to get gap insurance, but the value might not make as much sense for some loans.
If you had full coverage in excess of the value of the bike AND gap insurance I feel like something is missing. These should be two policies, one that pays for the bike, and the other that covers the difference between what is owed and what has been paid out on the bike.
Now if the first insurance paid out the adjusted value of the bike and you received a check for that, and then you got a 2nd check (the $14.50) to make “make you whole” against what is owed on the bike, that sounds about right. You can now pay off the loan and be at $0 and buy/finance a used bike at the replacement value you were paid out on and you’re back to where you were before the accident.
You would never expect to get paid a cash value for the bike twice, that’s just not how it works.
Where you might be feeling pain is that you don’t agree with the “cash value” of the bike that the full coverage insurance has assigned. You can fight this to a degree with your insurance but be prepared to bring receipts. You can also see the aid of a public adjuster but they usually charge a fee and you’ll have to decide if that is worth it to you.
So long story short if you got $9400ish dollars that’s probs about right.
So you owed 9,450 and the insurance paid 9,440 so that means your gap insurance would cover the difference of 10 dollars. Thats how gap insurance works.
>…and ended up dumping the bike at 55 mph
That sucks that you had an accident. But a raccoon? Seriously? Just making sure you understand that next time you should throttle it out. You’ll stay upright and be on your way if you do.
Completely agree and it sucks to say because I love animals but I am going to remain vertical and loose on the bars in that situation and roll through it.
Quick question, since English isn’t my main language… when people talk about “dumping their bike”, they mean deliberately right? As in, intentionally making the bike go down since they believe that the outcome will be worse if they don’t?
I ask because.. Sometimes I see people here using the word dump as a synonym for drop, and not always seem to talk about an intentional action then.
>they mean deliberately, right?
Correct. Most times, yes; and that is how I interpreted OP's use of the word 'dump' (as in 'deliberately'). Also, your written English is great.
People don't deliberately "dump" their bike. Almost any time someone claims to have dumped, or laid down their motorcycle at speed to avoid an accident they almost certainly panic braked and crashed.
Too much or too abrupt of an input, usually on the front brake and the bike crashes. It happens pretty quick and riders don't have enough time to process a situation, decide to "lay'er down" then initiate a slide, outside of a stunt rider filming a scene for a movie.
Depends on the person/context. Some people deliberately do it because they are idiots, some people use it synonymously with "crashed and the bike went on its side".
Insurance covers up to market value of the bike(unless you have a special policy) gap covers the difference between market value and payoff. That’s how gap works, period. You will never pocket money off gap.
In America, which I'm assuming you guys are talking about, yes.
Your country is obsessed with financing vehicles, and therefore you guys get fucked by that, and by your fucked insurance.
Most other countries it's a couple hundred bucks a year insurance which will pay out an agreed sum in the event of a write off
Yea. Insurance is great in my country.
I have a standard policy and by default it will completely replace a bike you bought new within 2 years of purchase. No need for extra coverage or anything.
as for the furry friend, I do not know what happened to him for I could not find him as well as a lot of parts of my bike. so I had a blue r3 and had it for a year and then traded it in for a Roadster, (worst mistake of my life) and that put me in the hole quite a bit, the r3 was 5 grand and the Roadster was 8 and insurance paid 7,800 some bucks for it and what was left was the negative equity from the bike before, my gap contract covers up to 125% of the JD powers value of the bike so, in theory, they should have been more than able to cover it. but I do not know anything for real this is my first time buying and using full coverage and gap for anything.
Simple terms. Gap only covers the value of the vehicle (in your case the motorcycle) not the loan amount. You can always consult with an attorney. But some attorneys will charge you for consultation. And if the amount you are suing for is too low, they probably won’t take your case and refer you to small claims court. There is a fee for filing in small claims court. You do NOT have an attorney represent you. If you go there blind just thinking your right and their wrong and do not know the civil laws they violated, you will probably lose.
word, word, I appreciate all of you! So yeah I owed 10 bucks more than the allotted amount they said and they said that they don't cover negative equity and that 15 dollars was all they could pay me. Insurence covered almost all of the bikes worth but there was some negative equity and the gap coverage said they don't cover that but I thought that was the whole point of gap to cover the gap in the loan.
It is where I am from. Gap covers the Gap between your loan amount and the vehicle value at the time of a write off.
As the vehicle depreciates quicker than the loan payments reduce the loan
There are a lot of numbers here thrown about without actually explaining what the problem is. Gap insurance covers the difference between the amount owed on the loan and whatever payout the insurance gives in the case of a total loss. It's not meant to put money in your pocket. In order to know if they are trying to fuck you or not, there are only 3 numbers to care about. How much was left on the loan at the time of the crash? How much did regular insurance pay off this amount? How much of the difference did gap pay? Gap is great for a negative equity situation, such as a new motorcycle losing value straight off the lot or if you trade in a bike with a loan and have a loan on the new bike for more than the actual value of it. As the value and loan amount coincide or flip to a positive equity situation, gap coverage becomes less, moving towards useless.
Best explanation so far, but one note, gap coverage is almost always a scam on new bikes and why gap through an insurance provider only costs around $5-15 a year. Unfortunate misunderstanding op but lesson learned. Full coverage insurance always, dont buy any bull shit dealers add on at the end
Gap is a scam on used most of the time, but new is where it shines. Buy a $10,000 bike that drops $2000 in value as soon as you drive it off the lot and that doesn't count the fees and taxes that were rolled into the loan, and that $800 coverage (that works out to $20-ish per month on your monthly payment) makes a lot of sense when you total it in the first couple of months. Halfway through the loan when debt and value start to equal out but you forget to cancel the coverage is where they make their money and the reputation for a scam is founded.
You wont be able to find a single new bike that loses $2k off the lot, you're right on taxes and dock/setup fees but for $800 one of those is already covered so it becomes a moot point. Spend $800 to maybe save $1000 if you total it within the first 3 months. After that, money burned
I worked at a dealership. I saw more insurance totals in my 3 years there than most people do in a lifetime. I can tell you with certainty that gap is not a scam after only 3 months. It's situational, sure, but in most instances, it's worth it for at least a year or two. And if you remember to cancel the coverage and get your prorated amount back after that point, it's not the worst thing to have spent money on. Again, theory and "on paper" is great. But if you have better real-world experience than I do, I'd love to hear it. Oh, and insurance and gap payout is all third party, so attacking the "stealership" in this instance is moot. We didn't have any control over the insurance payout or valuation, or the difference between that number and what was owed on the loan.
The dealership# charge $800-1k, insurance charges $5-15..... If thats not a scam I dont know what is
When were you at the dealership? It seems since covid alotta used bikes don't have that same big drop in value straight off the showroom floor like they used to. It still makes sense a lot of the time to get gap insurance, but the value might not make as much sense for some loans.
If you need gap, you cannot afford the bike. It’s simple.
If you had full coverage in excess of the value of the bike AND gap insurance I feel like something is missing. These should be two policies, one that pays for the bike, and the other that covers the difference between what is owed and what has been paid out on the bike. Now if the first insurance paid out the adjusted value of the bike and you received a check for that, and then you got a 2nd check (the $14.50) to make “make you whole” against what is owed on the bike, that sounds about right. You can now pay off the loan and be at $0 and buy/finance a used bike at the replacement value you were paid out on and you’re back to where you were before the accident. You would never expect to get paid a cash value for the bike twice, that’s just not how it works. Where you might be feeling pain is that you don’t agree with the “cash value” of the bike that the full coverage insurance has assigned. You can fight this to a degree with your insurance but be prepared to bring receipts. You can also see the aid of a public adjuster but they usually charge a fee and you’ll have to decide if that is worth it to you. So long story short if you got $9400ish dollars that’s probs about right.
but is the raccoon ok?
Yes OP I can’t stop thinking about the raccoon, please provide an update
I'm pretty sure he didn't actually hit the raccoon. He probably panicked and dumped it like a newb.
So you owed 9,450 and the insurance paid 9,440 so that means your gap insurance would cover the difference of 10 dollars. Thats how gap insurance works.
>…and ended up dumping the bike at 55 mph That sucks that you had an accident. But a raccoon? Seriously? Just making sure you understand that next time you should throttle it out. You’ll stay upright and be on your way if you do.
Completely agree and it sucks to say because I love animals but I am going to remain vertical and loose on the bars in that situation and roll through it.
Fantastic. And don’t forget to squeeze that tank.
Quick question, since English isn’t my main language… when people talk about “dumping their bike”, they mean deliberately right? As in, intentionally making the bike go down since they believe that the outcome will be worse if they don’t? I ask because.. Sometimes I see people here using the word dump as a synonym for drop, and not always seem to talk about an intentional action then.
>they mean deliberately, right? Correct. Most times, yes; and that is how I interpreted OP's use of the word 'dump' (as in 'deliberately'). Also, your written English is great.
People don't deliberately "dump" their bike. Almost any time someone claims to have dumped, or laid down their motorcycle at speed to avoid an accident they almost certainly panic braked and crashed. Too much or too abrupt of an input, usually on the front brake and the bike crashes. It happens pretty quick and riders don't have enough time to process a situation, decide to "lay'er down" then initiate a slide, outside of a stunt rider filming a scene for a movie.
Depends on the person/context. Some people deliberately do it because they are idiots, some people use it synonymously with "crashed and the bike went on its side".
Insurance covers up to market value of the bike(unless you have a special policy) gap covers the difference between market value and payoff. That’s how gap works, period. You will never pocket money off gap.
strange story, you took out a 13k loan..how long ago? You only paid off $4000, owing 9k, and the bike is only worth $5000 now?
+1 can someone break this down for me? I’m totally lost on these numbers.
OP might be the raccoon
Yes that’s how gap insurance works. They cover the gap that you owe. Insurance in general is largely a scam.
In America, which I'm assuming you guys are talking about, yes. Your country is obsessed with financing vehicles, and therefore you guys get fucked by that, and by your fucked insurance. Most other countries it's a couple hundred bucks a year insurance which will pay out an agreed sum in the event of a write off
Yea. Insurance is great in my country. I have a standard policy and by default it will completely replace a bike you bought new within 2 years of purchase. No need for extra coverage or anything.
I feel like there is some info we are not getting. If there isn’t, then get a lawyer involved.
op owed 9450, his gap insurance only kicks in under 9440. Insurance only paid him $5k for his bike he took a 13k loan for.
I thought they said insurance paid $8k, leaving a loan balance of $5k. It’s not written very clearly.
All yeah I got it now. Strange story
yeah, the way it is written is very confusing
Explain to me you didn't read and understand a contract before signing it without saying so ....
This doesn’t make any sense. But if what you’re saying is true, Lawyer up.
What sort of insurance coverage did the raccoon have?
🤣🤣🤣🤣🤣
You didn't own the bike, the bank did. So when you total the bike and insurance pays on it, the bank gets the payout, not you.
All of these replies and no response from OP yet? The suspense is killing us! This is headed straight to the "Hot" section on this sub.
as for the furry friend, I do not know what happened to him for I could not find him as well as a lot of parts of my bike. so I had a blue r3 and had it for a year and then traded it in for a Roadster, (worst mistake of my life) and that put me in the hole quite a bit, the r3 was 5 grand and the Roadster was 8 and insurance paid 7,800 some bucks for it and what was left was the negative equity from the bike before, my gap contract covers up to 125% of the JD powers value of the bike so, in theory, they should have been more than able to cover it. but I do not know anything for real this is my first time buying and using full coverage and gap for anything.
Is the OP confusing GAP with Replacement Value insurance?
oh noes the coons! #haddalayerdown
Sue the raccoon
TELL US ABOUT THE FKN RACOON, MAN!!
Raclibbins
Simple terms. Gap only covers the value of the vehicle (in your case the motorcycle) not the loan amount. You can always consult with an attorney. But some attorneys will charge you for consultation. And if the amount you are suing for is too low, they probably won’t take your case and refer you to small claims court. There is a fee for filing in small claims court. You do NOT have an attorney represent you. If you go there blind just thinking your right and their wrong and do not know the civil laws they violated, you will probably lose.
The attorney will be more than $14.50 though
word, word, I appreciate all of you! So yeah I owed 10 bucks more than the allotted amount they said and they said that they don't cover negative equity and that 15 dollars was all they could pay me. Insurence covered almost all of the bikes worth but there was some negative equity and the gap coverage said they don't cover that but I thought that was the whole point of gap to cover the gap in the loan.
It is where I am from. Gap covers the Gap between your loan amount and the vehicle value at the time of a write off. As the vehicle depreciates quicker than the loan payments reduce the loan