Should I Get Gap Insurance

Also known as being under water or upside down this can happen if you ve missed payments if your payments are too small to outstrip the pace of depreciation or if your car is simply too new.

Should i get gap insurance. You will want to buy gap insurance right after securing a car loan. Gap insurance policies do not replace your primary auto insurance policy but instead provide coverage over and above your primary auto insurance policy. I think you re missing the biggest fundamental point of all why you should never buy gap insurance at all from anyone. Guaranteed asset protection or gap insurance is a financial product often sold when you buy a brand new car.

Simply put gap insurance is additional insurance on a vehicle that covers the vehicle s value between the amount you owe and the amount the vehicle is worth. Say you buy a new car for 30 000 and you finance the entire amount over 60 months. Gap coverage is available in most but not all states. Include a low payment or zero down payment.

You owe more on your auto loan than your car is worth. You should never put yourself in the situation to be underwater on a car. That s still a little wordy though so here s an example that should help explain it. Request a gap insurance quote from your insurance agent or an independent insurance company instead.

If you re not required to purchase gap insurance there are a number of reasons why you should consider adding gap insurance. Some gap insurance plans also cover your insurance deductible. Gap insurance often flogged by pushy car salesmen covers the difference between the amount you paid for your car and the amount an insurance company would give you if it was written off or stolen. Gap insurance is usually more expensive if you get it from the dealership or bank but if you choose to add it to your car insurance policy it should only cost you around 20 for the entire year.

Most often car buyers purchase gap coverage through the lender financing their purchase though insurance companies and online vendors offer it too. Typically a dealer works to sell gap insurance on vehicle sales that. Gap insurance supplements the payout you get from comprehensive or collision coverage if your car is totaled or stolen. This guide explains the basics of gap or guaranteed asset protection insurance to give it its formal.