Is Motorcycle GAP Insurance Worth It?

If you owe more than your bike is worth, which is common in the first few years of a loan, motorcycle gap insurance is suggested. It will most likely cost you a few extra dollars per month, but it could save you thousands in the event of a catastrophic loss.

An independent agent can assist you in finding motorbike insurance and motorcycle gap insurance that meets your requirements and falls within your budget. To get fast quotes from different insurance companies, contact a local agent now.

Is Gap insurance a good idea?

Gap insurance is absolutely worth the money if you owe more on your car than it is now worth at any point in time. If you put down less than 20% on a car, you should consider getting gap insurance for at least the first couple of years. You should owe less on the car than it is worth by that time.

Is Gap insurance a con?

Finally, the decision to get GAP insurance is yours. It’s not a scam in the sense that some automobile scams just grab money from a buyer and don’t give it back, but you can typically get a better price than you would from a dealership. If you want the assurance that your loan will be paid off even if your automobile is totaled, check around for GAP insurance rather than buying it with the vehicle.

Does Gap Insurance last forever?

When acquired from a dealership, gap insurance lasts for the duration of the loan or lease, and when purchased from a normal auto insurance company, it lasts as long as it remains on the policy. Because gap insurance is ineffective when a car is worth more than the loan/lease balance, it’s normally only needed for one to two years.

If an automobile is deemed a total loss, gap insurance covers the difference between the loan or lease balance and the actual cash value. Gap insurance can protect drivers from having to make payments on a car that is no longer drivable because new cars depreciate quickly. However, because depreciation slows over time, the gap between the car’s value and the loan/lease total closes as the driver pays off the vehicle.

As a result, you should keep track of how much you owe and use internet tools like Kelley Blue Book to determine the car’s value. In general, after your loan or lease debt is $1,000-$2,000 less than the car’s value, it’s time to discontinue gap insurance.

Can I cancel gap insurance?

Is it possible to cancel gap insurance? Yes. Gap insurance will no longer be worth it once you have less money to pay off on your loan than the real value of your car. When you’re ready to cancel your gap coverage, the good news is that you’ll be able to earn a prorated refund.

How long do you pay gap insurance?

A GAP insurance policy, which typically lasts three years, is designed to address this issue by compensating you for the gap between the amount you receive from your auto insurance provider and the cost of replacing your vehicle.

What is the most gap insurance will pay?

If you have comprehensive and collision coverage, and your vehicle is totaled due to a covered risk such as an accident, theft, fire, flood, tornado, vandalism, or hurricane, your insurer will pay you the actual cash worth of your vehicle. This sum is frequently far less than the remaining balance on your loan or the amount needed for a lease repayment.

When your actual cash value (ACV) payout is less than what you owe on your lease or loan, the “gap” you may be left paying is the result of this financial shortfall. Gap insurance could come in handy in this situation.

What does gap insurance cover?

Gap insurance will reimburse the difference between the vehicle’s ACV and the current outstanding balance on your loan or lease if it is stolen or totaled. It may also cover your usual insurance deductible.

Car owners frequently believe that if their vehicle is wrecked, it will be replaced for the price they paid, or at the very least the amount owed. This is not the case. As a result, several auto insurance companies offer gap insurance (also known as loan/lease payoff insurance) as an add-on policy.

To get gap coverage, you must also have comprehensive and collision coverage, but these are normally required if you lease or loan your vehicle.

What isn’t covered by gap auto insurance?

  • Extensive warranties, credit life insurance, and other insurance purchased as part of the loan or lease
  • Wear and tear, past damage, towing, and storage costs are subtracted by the primary insurer.
  • Only factory-installed equipment is covered, as opposed to equipment added by the buyer.
  • Mechanical difficulties, such as engine or transmission breakdowns, or any other car issues that aren’t covered by your auto insurance policy

Does gap insurance cover theft?

Yes, gap insurance protects you if your automobile is stolen and not found. It works in conjunction with your comprehensive insurance to protect you from theft. If your automobile is stolen, comprehensive will pay up to the actual monetary value of your car, minus your deductible. The difference between that amount and what you owe on your loan would be covered by this coverage.

How is gap insurance calculated?

  • Your lease or loan may demand it: Your leasing or financing business may require gap insurance to safeguard you in the case of a total loss. However, just because it’s required doesn’t guarantee it’s included in your loan or lease, and you might be able to get it for less elsewhere.
  • You paid a little down payment or chose a long lease: If you have a modest down payment or a lengthier lease, your automobile will lose value quicker than you can pay it off, especially in the first few years.
  • You own a high-end or luxury vehicle: Luxury cars depreciate more quickly than other cars, so if you buy a Cadillac or Lexus, your loan amount is more likely to exceed the car’s worth.
  • You drive a long distance in your automobile: While every car loses value the moment you drive it off the lot, traveling a long distance in a new car reduces the worth of the car far faster. The car’s value decreases as you drive it more miles.

Does Harley offer gap insurance?

Ride with confidence, knowing that you’ve chosen an industry-leading motorcycle protection policy that will secure your investment for the long haul!

Our extensive line of protective items can be adjusted to your bike’s exact requirements as well as your budget:

  • With the Harley-Davidson Extended Service Plan, you can ride worry-free, knowing that you’re covered against costly repairs on covered claims for up to seven years and unlimited miles (ESP).
  • If your bike is stolen or damaged beyond repair, rest assured that Harley-Davidson Guaranteed Asset Protection (GAP) will cover the remaining balance once your insurance company settles.
  • Harley-Davidson Theft Protection helps law enforcement rapidly identify your bike and, if required, aid with the purchase of a replacement bike, protecting you and your asset.
  • With Harley-Davidson Appearance Protection, you can protect your bike’s most critical surfaces (paint, leather, and chrome) from the elements you’ll experience on the road, and rest confident that if covered damage occurs, the affected areas will be restored or replaced.
  • Harley-Davidson Planned Maintenance, which is scheduled in accordance with H-D factory recommended service intervals, helps keep your bike from breaking down unexpectedly and keeps it in road-ready shape.

How does Harley Davidson gap insurance work?

The difference between the fair market value of your vehicle and the outstanding balance of your loan on the date of loss is covered by Harley-Davidson GAP up to $35,000*. Additionally, your deductible may be covered up to $1,000.

What voids a Harley warranty?

The Harley-Davidson limited warranty provides a two-year coverage duration and unlimited mileage coverage. That implies you can drive 100,000 miles and still be covered by the guarantee if you do so within 24 months of the purchase date.

The guarantee covers practically everything from fender to fender, but you’re responsible for repairs and service once the warranty has expired. The factory warranty applies to any authorized Harley-Davidson dealer, not just the one where you bought the bike.

Fender-to-Fender Coverage

Warranty work on Harley-Davidson motorcycles and sidecars must be done at a Harley-Davidson dealership. Any parts that are defective in materials or workmanship will be replaced or repaired by the motorbike manufacturer. This warranty work is provided free of charge and without the owner incurring any costs.

In addition, if you sell your Harley before the warranty ends, the remaining portion of the warranty can be transferred to a new owner.

Harley-Davidson and its dealers are not liable for “loss of use, inconvenience, lost time, business loss, or other incidental or consequential damages” incurred as a result of warranty repairs. For instance, if you ride your bike to work and it breaks down, HD is not obligated to compensate you for lost wages or other expenses.

Limitations differ from state to state, so you should be aware that certain warranty terms may not apply to you depending on where you live.

The HD limited warranty covers several things, but not all of them. It excludes bikes that are not properly maintained or operated. It excludes bikes that have been abused, misused, improperly stored, or used off-road or in competition.

War, riots, acts of God, and natural disasters such as earthquakes, floods, hail storms, lightning, and nuclear contamination are also not covered by the guarantee.

  • Oil and filter replacements, engine tune-ups, and chain/belt adjustments are all part of routine maintenance.
  • Environmental factors, lack of adequate upkeep, and other factors can all contribute to cosmetic concerns.

Installing off-road or performance-enhancing accessories, such as an aftermarket exhaust or an electronic fuel injection (EFI) tuner, will void your Harley warranty. If you or an unauthorized person (rather than a Harley dealership) installs Screamin’ Eagle parts or other performance parts, you can technically invalidate the warranty.

However, it frequently boils down to the dealership in question. If you replace the pipes or intake or add slip-on mufflers, many service writers and mechanics will look the other way, but don’t consider this as permission to change your bike without fear of repercussions. To be safe, you should wait until the warranty has expired before you begin customizing it.

H.O.G. and Roadside Assistance

A one-year membership to H.O.G. is included with the purchase of a new Harley-Davidson motorbike (Harley Owners Group). Benefits such as roadside assistance are included in this membership.

If your motorcycle breaks down mechanically or electrically, you can contact a specialist to get you back on the road or take it to a Harley-Davidson store for repairs. However, the H.O.G. regular package only entitles you to one service each calendar year. After a year, your H.O.G. membership expires, but you can renew it and add additional coverage.

The Deluxe roadside assistance service covers up to two motorcycles and includes towing and roadside help. The Ultra package adds emergency travel reimbursement in addition to the same coverage, while the Ultra Plus option covers up to three vehicles, including cars and trucks.

You can also join as a full member, an associate member, or a life member of the H.O.G. You can become a full or life member at any time by contacting HD or by going online.