If you pay cash for a car does the dealership still have to offer gap insurance?

I bought a van and paid with a check from another finacing company the deajership did not offer us gap insurance and they are saying that they did not have too because we basicaly paid cash which we did not it was just financed thruogh someone else which the dearler knew so did they by law still have to offer us the gap insurance?

If you pay cash for a car does the dealership still have to offer gap insurance?
There are absolutely no laws requiring that the dealership offer you gap insurance.


Further, you walked in with a check to pay in full for the vehicle - they would have to secure a loan FOR YOU in order to attach gap insurance for you


Gap insurance is not a seperate policy. It is a part of the loan
Reply:OK, you have a PERSONAL loan for the car, it sounds like. The GAP coverage, doesn't cover a personal loan. It only covers a CAR loan - where the car itself is used as collaterol. If you paid CASH for the car, there isn't a loan on the car, so GAP would never apply - anyone who SOLD you gap, would be ripping you off.





If the check from another finance company used the car as collateral, you did NOT pay "cash" for the car - there's a loan on it. The "gap" you get from a dealer, isn't true gap insurance - it's actually sold by their LENDING company. So no, they don't offer it to you, if you don't use their lending.





BUT, most personal auto insurers will offer you gap coverage on your INSURANCE policy, if it's a new car, within 30 days of the purchase. So just add it to your personal auto policy. It costs about 30% of the collision and comp premium.
Reply:Hi Angela Y





There are so many folks who don't understand gap insurance. As there are so many different insurance products on the market, this isn't surprising. Auto gap insurance is there to help you with the difference between the amount you still owe on your vehicle and the amount your comprehensive insurance pays out in the case of theft or a written off vehicle.





The dealership usually isn't obligated to offer automobile gap insurance, although many do. But you usually won't get the best deal at a car dealership. Also, if you pay cash, gap insurance normally won't apply.





You can downlaod a free e-book (see link) that answers 21 crucial frequently asked auto gap insurance questions. If one looks at the scary crash and theft stats, it seems wise to contact one of the automobile gap insurance companies.
Reply:What type of loan was it through the other finance company, was it a personal loan or a car loan? I ask because I wonder why you would have a check for it if it was a car loan. If you took out a personal loan or any other type of loan, then yes you would be given the check. Unless the loan for the car is a vehicle loan, they don't need to offer you gap insurance.
Reply:GAP insurance is a seperate policy. If you had a loan with Bank of America, you wouldn't call them if you totaled the car, you'd call the GAP company.





In the dealers eyes, you did pay cash. You will need to contact the bank you actually financed though. Then, if they don't offer it, you can search online and buy the policy almost anywhere. I'm surprised the dealer wouldn't let you buy the GAP from them anyway. They pay about $200 for it and usually sell it for at least $700!!





Point is, you can buy GAP insurance anywhere. Just search for it.
Reply:Gap insurance is either offered by the finance company or your insurance company. The transaction that you made with the dealership was a cash sell and they are not obligated to offer you gap insurance since you didn't use their lending company. Check with your insurance carrier. Many offer this coverage.
Reply:I would think that the company that you financed it with would offer GAP. It is cash in the dealers eyes, because you are not financing it through them or their banks. You gave them a check for the amount in full.