Carco Gap Insurance
When you purchase a new car, you may be offered gap insurance. Gap insurance is insurance that covers the difference between the amount you owe on your car loan and the actual cash value of your car in the event that it is totaled or stolen. While gap insurance is not required, it can be a wise investment, especially if you have a loan on your car.
How Does Gap Insurance Work?
If you have a loan on your car, your insurance will only cover the actual cash value of the car, minus your deductible. If you owe more than the car is worth, you will be responsible for paying the difference. Gap insurance covers this difference, so you would only be responsible for your deductible if your car is totaled or stolen.
Should You Get Gap Insurance?
If you have a loan on your car, gap insurance can be a wise investment. It can help you avoid being responsible for a large amount of money if your car is totaled or stolen. If you are leasing a car, gap insurance is usually required.
If you have any questions about gap insurance, be sure to ask your insurance agent. They can help you decide if gap insurance is right for you.
