What is gap insurance on a car?
Gap insurance on a car helps cover the difference between what you owe on a car loan and the car’s actual value if it’s totaled or stolen. For example, if you owe $15,000 on a car loan but the car is only worth $10,000, gap insurance would pay the $5,000 difference. It’s helpful for new cars that lose value quickly or if you have a long loan term. It’s good to consider getting gap insurance to protect yourself financially in case of an unexpected loss of your vehicle.
