Beware of GAP Insurance for your bike

(November 13, 2017) In July 2015, I bought a new Harley-Davidson Ultra Limited at my local dealership. The Motor Company was offering financing at 0.99%. My old bike was outside, its crankshaft just about to fail completely. I hadn't ridden it at all for more than two weeks and was feeling withdrawal symptoms. I had just taken a new bike for a ride and had the fever, bad. I was the perfect customer: desperately eager to buy, a really good credit rating, but not a lot of cash in hand and I wasn't thinking very clearly.

After the sales rep handed me off to the sales manager for the paperwork, he offered me a whole list of add-ons, which I refused, except one: GAP insurance. I had put only $4000 down, so the Bluebook value of the bike was at best equal to the loan amount, I estimated based on no real evidence. Thus, Guaranteed Asset Protection (GAP) insurance seemed like a good idea, even for $795. The sales manager reassured me that if I paid the bike off early, I would get a refund on the unused portion of the coverage. I believed him. 

This GAP coverage was offered from a company called Western Diversified Services, Inc. out of Deerfield, IL. As I suspected I would when I bought the bike, I paid the loan off early--after only two years on a five-year loan. After multiple attempts, in writing, to obtain a refund from the "Program Administrator" at Diversified Services, I remain unpaid. I've never received any kind of response. Imagine if I had actually needed to file a claim!

Take my advice: it you want GAP coverage, buy it on your own through a reputable insurance company. Steer clear of whatever the dealership is offering.

Keep the shiny side up!

-The Long Rider

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