What is Gap Coverage?
Gap insurance closes the gap between what your auto insurance company estimates your car is worth (if it has been stolen or totalled) and what you still owe to the finance company. It is especially important for new car owners to carry this coverage. Your car depreciates immediately just by driving it off the dealer’s lot and will most likely depreciate anywhere between 20% to 30% within the first few months.
If your $20,000 car depreciates a mere 20%, you will already be out $4,000. Should disaster strike