GAP protection and lojack?

Question

It says..GAP Protection pays the difference between actual cash value and loan balance if a customer's vehicle is stolen or totaled in a collision............SO!. I'm a bit confused with the lojack. I purchased the GAP when I got my car and also the lojack........If I have GAP protection, isn't the lojack unnecessary?

Answer 1

Lojack does not pay you for your vehicle, it protects your vehicle.  GAP is always wise to purchase.

Answer 2

Lojack is not insurance.The lojack is to track your car if it is stolen, The police can find it before it is striped you might be abel to get it back with minimal damage and you might even get your personal effects back. You will also get the satisfaction that the thieves were arrested

Answer 3

Answer from a General Insurance Agent

Cash Value is the "Fair Marklet Value" of your vehicle at the time of a loss. The loan Balace is the amount you owe on your vehicle finance note. It has nothing to do with the vehicle value.

The Fair Market Value could be more or less than the amount you owe on your car note depending on things like, did you get a good deal on your vehicle purchase to begin with?, and  where you are at in your finance note and the vehicles condition, options etc.. Obviously if you purchase a vehicle above Market Value, then you would owe more on your loan's Note Balance than the vehicle was worth.

Auto Insurance will normally pay the Fair Market Value of your vehicle at the time of a covered loss unless you stipulate in your policy an agreed value, aka "Stated Value" on the insurance application acepted by the insurance company.

Gap Insurance covers the Lien holder. It is "NOT" Auto Insurance" in any shape or form. It is basically "Finance Company Insurance".

GAP Policies are explicit in that they will NOT pay for a loss unless that loss is already "Fully" covered by your own Comprehensive or Collision Auto Insurance. It will only pay  after your own Auto Insurance Policy has has already been exhausted and paid the maximum limits.. (Does that sound confusing enough yet?)

Unfortunately GAP insurance is a real scam. It's usually sold by auto dealerships and finance officers who have no Insurance License or Training of any kind.

It's best just to have a good Comprehensive Auto Insurance Policy.

Lo Jack is a "Vehicle Theft Recovery and Tracking System", If your vehicle is stolen, the police can activate your lo jack system remotely. Disabling the ignition and locating it by GPS coordinates. By The same token, If the police are looking for "You" they can do the same. If perhaps your finance company has determine you are a bit too past due on your payments, They too can disable your vehicle and locate it.

Take Care and Good Luck