Gap Insurance Brooklyn NY

Gap Insurance: When You Owe More Than It’s Worth

August 22nd, 2006 by Megan Mahan

We’re experiencing a bit of a slow insurance news day on this Tuesday afternoon, so I thought I’d take a peek into the InsureMe Insurance Resource Center and find a topic we haven’t covered here at the Insurance Blog yet: gap insurance.

Quite simply, gap insurance can help you close the “gap” between what you owe on your car loan and how much the car is actually worth.

Think of it this way: your car suffers serious flood damage. You still owe $12,000 on our car, but your auto insurance will only cover the current value and cuts you a check for $5,000–leaving you with a $7,000 gap. Yikes. But, as the name suggests, gap insurance can help take care of that residual amount.

The good news is, more drivers are becoming wise to the gap insurance necessity and as a result, more lenders and car dealerships are making it easier to buy. I purchased a gap insurance policy through my lender last year for a few dollars per month.

But I’ll stop yapping now and direct you to the gap insurance goods. Check out our article, Closing the Gap When You Owe More for Your Car Than It’s Worth

Click here to read the full insurance article from Insureme.