If you have recently obtained a loan to purchase a new or late model used vehicle, odds are that you need Gap Insurance!
Gap Insurance:
When a vehicle is deemed a total loss due to physical damage or theft, Gap Insurance pays the difference between the loan balance owed and actual cash value settlement amount paid by the primary auto insurance.
Did you know when you drive your new car off the dealer's lot your car has most likely lost 20% of its value?
If you put less than a 20% down payment on your car, you're a good candidate for gap insurance.
How does gap insurance work? If your car is stolen or declared totaled, your auto insurance company will pay you the actual cash value of the car. The actual cash value can be a lot different from what you still owe on your loan. Without gap insurance your lender will hold you responsible for paying the difference between the actual cash value and the amount left on the loan.
This might mean you having to come up with hundreds even thousands of dollars to pay that debt. Gap insurance will eliminate you having to pay the difference and eliminate the stress of having to come up with that money.
