Quote:
Originally Posted by CincyJohn
Ahh - now you are understanding. If you spending that $80 makes you sleep well at night, well then it's probably worth it for you. Me spending the same $80 would make me feel like I unnecessarily just threw away $80 bucks (which is why I didn't and wouldn't do it).
But make no mistake, you are buying emotional well being. It is not cost-justified from a pure mathematical sense because, as I am sure you understand, even assuming perfect risk assessment by the insurance company (which is a lot to assume), insurance is always a net loss for the insureds when taken as a whole because of the costs involved in administering it.
Everyone has different feelings about risk.
Of course, having said all of that, I can't understand insuring for a "gap" that doesn't exist.
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It sounds like you are in the top 1% and if that is true, well done you.
Gaps do exist. Ask anyone that buys a stock on the way down. The OP's situation is a sign of the times. Historically, most car buyers buy at the max of their budget, extended out for as long as they can, and can't afford a vet bill. For the price of a tank of gas it's well worth it to anyone to buy gap insurance for peace of mind. As for under-insuring it's a fools game. You might be able to afford to replace your car outright but what if you are at fault in an accident that destroys a neuro-surgeon's ability to make a living. In a country where you can sue anyone for anything you will wish you had proper coverage.