|MORE REASONS TO BUY GAP INSURANCE|
|Posted on: Sep. 20, 2017 in Car Loans, Auto Insurance|
Yesterday, we talked about GAP insurance and why you might need it. In any situation where you owe more than your car is worth can be one where you’ll benefit from GAP insurance. If your car is totaled or is stolen but the amount you’d get from insurance won’t cover the loan, what would you do? You’d not only have to gather up funds to get yourself a new car, but you’d still have to pay off the old one you don’t even have anymore (or isn’t drivable).
GAP insurance covers that difference when you’re underwater or upside down on your auto loan. Buying this insurance is a great way to protect yourself. However, there are some scenarios that are more likely to leave you in the position of needing GAP insurance.
Let’s explore some scenarios that are more likely to leave you underwater.
Being smart from the start about what kind of car you buy, how much you can put down up front, and how quickly you can pay it off, can help you avoid being upside down on your loan. But for those times when you can’t avoid negative equity, GAP insurance can help!
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