Gap Insurance
Gap Auto
Gap insurance can also be applied to auto insurance. If you have financed or in-house leased a car, (new or used) then you have invested a lot of money in that vehicle, sometimes up to $20,000 or more! Now what if your car is involved a wreck and is no longer drivable? Even if your auto insurance company declares the car totaled, they are still going to pay the total worth of the car. That sounds good at first…until you realize that the total lease price might be less than what the insurance company gave you to pay off your car. You will either have a recurring bill to pay out of your own pocket (which could affect your credit) and that’s in addition to whatever bills you pay while financing a new vehicle. Gap auto insurance covers this—it bridges the gap for any technicalities in auto insurance that leave you paying extra money. If you have gap insurance, then you won’t have to pay a penny extra besides your premium, even if your car is totaled and you owe the lienholder more money.
Gap insurance can save your thousands of dollars and in many cases, can even spare you paying a pricey deductible cost. Paying for gap insurance today could bring you significant savings in the future.