I was offered gap insurance (a.k.a. debt cancellation agreement) for $895 for 2021 Honda CRV EX FWD non-hybrid model for 4 years by the dealer. The payments are broken into monthly installments of $18.75 x 48 payments = $223/year.
I have heard that if your car insurance also offers gap coverage, then the cost is ~$50-60 per year.
The gap coverage price difference is a lot. Is the gap coverage price negotiable with the dealer? If so, what is a reasonable price?
Yep. Pretty reasonable for today.
While I can't provide specific negotiation advice, it's worth noting that prices for gap coverage can vary between different providers and dealerships. It's possible to negotiate with the dealer and inquire about the possibility of obtaining a more reasonable price for the coverage....
To get a better understanding of what would be considered a reasonable price for gap insurance in your situation, it might be helpful to consult a Mortgage Broker in Northampton. They can offer insights into various financial matters, including insurance-related topics, and help you navigate through the negotiation process.
When I got my car, I had a similar situation. I found that you can sometimes negotiate the price with the dealer. It's all about finding that sweet spot that works for you. Also, you're right about car insurance offering gap coverage too. I did some digging and found a better deal that way. You can also ask financial advisors (like Mortgage Broker in Warrington) for help if you need it. Good luck!