GAP auto insurance can be the difference between paying for a vehicle you no longer own and getting back on the road in something similar fast at no additional cost.
If, for example you bought and refinanced a newer vehicle worth $30,000, and put down a $1,000 down payment resulting in a $29,000 loan and subsequently had an accident, the insurance company may only be willing to pay you $26,000, or the depreciated “fair market value” for the vehicle. You’ve only paid $1,000 off on your loan and still owe $28,000, but you’re only getting $26,000 in return to apply to your loan.
There’s nothing “fair” about that.
When you purchase GAP Insurance, the gap between what the insurance company is actually willing to pay and what you paid for your vehicle is bridged by your GAP auto insurance, and you can get a fresh start on financing a new car loan, without the cloud of a previous “total loss” piled on top of your new payment.
GAP Auto Insurance is Right for You If…
GAP auto insurance can be a life-saver if:
- You are financing for longer than 60 months
- You had less than a 20% down payment
- You have ever had to roll negative equity into a new vehicle loan
- You drive more than 15,000 miles in a year – leading to increased depreciation
- You purchased a car with a history of depreciation
Purchase GAP Insurance now
If any of these apply to you, and you have ever thought to yourself “should I get GAP insurance?” consider rolling it into your refinance loan from CARS.
GAP auto insurance can make a big difference, and can give you an advantage in the race between paying off your vehicle loan and depreciation getting the best of you.
Contact CARS today to learn more about GAP coverage, and find out if it makes sense for your auto refinance loan.