Do You Need Gap Insurance Coverage?
Gap insurance is not required but it's no secret that on a new car purchase, as soon as you drive off the lot, your car's value depreciates; up to 20% or more.
With that in mind, gap insurance is almost a necessity in case of a total loss to your vehicle. The insurer may cover what the vehicle is worth and the finance company will expect you to cover the difference. This can prove to be a huge out of pocket expense.
Speak with your agent about this type of coverage and shop around before signing on that dotted line.
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