The last thing you think of when purchasing a new car is if you were to ever total it. If you don’t think about it then it can never happen to you, right? Although it’s the last thing you want to consider, it’s important to protect your investments. Entertain all options to ensure your protection. That’s exactly what gap insurance is here for.
I’m sure you’re aware that your new car depreciates the second you drive it off the lot and it continues to do so throughout your ownership. So, what could happen if you owed more than your car was worth and you happen to total it? The difference, or “gap” between the cash value and what you owe won’t be covered by your average insurance policy.
You would be responsible to pay that difference out of pocket, following the devastation of losing your car.
With gap insurance, that difference is covered.
It may seem silly to pay for something that could never happen… it’s hard to spend money on anything that you can’t reap the benefits of right away. Purchasing gap insurance is purchasing a piece of mind and a protection on your investment.
Don’t worry about purchasing gap insurance at the time you purchase your car. Like all insurance, you can take the time to inspect all of your options. Shop around by comparing different insurance company’s policies and where you will get the best deal.
Ask your dealer and your lender whether they think you should consider gap insurance. It doesn’t hurt to ask questions and maximize all opportunities to get the coverage you need.