LogFAQs > #893659069

Dynalo posted...

From the 2nd to 3rd year they will buy you a new vehicle or give you the original cost of your vehicle + 6% if they can't replace it with the same make, model, and year. So basically, since they'll never find a brand new version of a 2-3 year old car, you just get the cash (or a new vehicle worth less than that amount... So just take the cash).

After the 3rd year, you automatically stop paying for that insurance (which is around $15/month), and your vehicle is treated like any other insured vehicle now - if it gets totalled, you'll get the current value of it.

That sounds extremely generous, practically too generous. Which company is this? Like with any business, there gotta be some sort of profit for them. I wonder if they only cover areas with very low accident rates, or have a very small client base and said client needs a perfect record.

With the way you described it, you will pay only about $540 over three years. During the first three years you'll get back the amount you paid for the car, after that you'll get back just the market value.

Assuming my math is right, if only 1 out of 64 customers get into an accident in those first three years, the insurance will kinda break even. 64 x $540 = $35,000. 1 out of 64 is 1.56%. I honestly can't tell if that seems too generous of a count.

Dynalo posted...

Jen0125 posted...

i'm pretty sure you have gap insurance. which is a bit different than just auto insurance.

It seems to be more or less the same thing, but the specific name (at least that my insurance uses) is "Waiver of Depreciation Insurance". Which sounds awfully fancy.

And yes, it's additional insurance on top of my regular auto insurance.

Now I am actually confused. What is the $15 per month for? Your actual auto insurance or your gap insurance?
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