Are you upside down on your car loan? When the balance of your car loan is greater than the resale value of your vehicle, you are upside down. If you total your car in an accident, you could end up stuck with a balance. Gap auto insurance can help cover you.
Gap insurance is generally an endorsement to your auto policy. However, in some situations it may be a separate policy from your traditional auto insurance policy. It can only be added at the time the vehicle is purchased. The standard comprehensive and collision policies for your automobile only cover your auto’s “fair market value”. The “fair market value” of your automobile may be much less than what you paid for your vehicle from the moment you take ownership. Basically, gap insurance makes up the difference between what you owe against your vehicle and what it is worth according to your insurance company
Gap insurance is not necessary to maintain for the entire time you own your vehicle but for a limited time. You don’t need gap insurance once the lien on your vehicle has been paid off, or you owe less than the “fair market value” of your vehicle.
However, a newer, financed vehicle should have gap insurance.
In most instances Gap insurance is very affordable, please contact us to get more information and a quote for your gap insurance.