What is Gap Insurance?
word of health insurance and homeowners
insurance and even pet insurance what about gap insurance no it's not
coverage for your moderately priced khakis and tasteful sweaters from the
mall for your car more specifically for the full value of your car you may be
aware that the moment you drive your car off the dealer a lot it loses roughly
10% of its value and on average your car will continue to depreciate 15 to 25
percent each year after that according to CARFAX but hey that's the cost of car
ownership right if anything happens to your car before you have your loan paid
off your comprehensive or collision insurance will replace your ride right
not necessarily your car stolen and not recovered or crashed and declared a
total loss your auto insurance carrier may not wholly make you whole instead
they'll reimburse you for the actual cash value of your car which remember
has been losing value since it became your car less your deductible because
your car may depreciate faster than your car payments reduce your loan balance
and you still may owe thousands of dollars more than that actual cash value
your policy pays out gap insurance covers this difference so you can catch
a ride to the dealership roll home and your brand-new replacement ride and all
you'll be out is your deductible and the time it takes you to reprogram your
stereo settings assurance estimates you can purchase gap insurance for a few
extra bucks a month on your vehicles policy or from the dealer for five
hundred to a thousand dollars now if you own your car outright
gap insurance probably isn't a great investment for you feeling lucky to take
your chances and go without but if you want to be on the safe side
then as they say in London mind the gap
