GAP Insurance

There are situations when you may want to have more than just typical full coverage car insurance. Just because you told your insurance company you wanted full coverage doesn't mean you'll get reimbursed for the full amount left on your car loan. Ideally this would never happen, but if you purchased your vehicle with a low down payment and received a mediocre/high interest rate, you may be in a situation where you owe more money on the car than what the car is actually worth. The car insurance company will cover the cost of the car, not the amount left on the loan. If you find yourself in this situation, you should purchase GAP insurance. GAP insurance will cover the "gap" between the cost of the car and the amount you owe on the car loan.

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