Do I Need Gap Insurance?
Posted by Administrator
You’ve just driven your car off the lot, when Murphy’s Law strikes. An accident damages the fender of your brand new car. Well, not to worry, you’re insured, right? Not exactly. You may not know it, buy the value of your car plummets, by as much as 20%-30% once it leaves the dealer. So if you get into an accident, even with full insurance coverage, you’ll only receive the market value of your vehicle which will be lower than your purchase price. That means you’ll have to shoulder the difference. If you have Gap insurance, you’ll be covered for the difference between your loan amount on the car and the car’s actual market value. But since this is not a requirement, some insurance companies may not offer Gap insurance. So before deciding to purchase your new car, check with your current insurance provider about Gap insurance. If it’s not included in the premium, you may want to purchase Gap insurance for a reasonable additional cost.