If your insured car is totaled in an accident, or stolen and unrecovered, your auto insurance may give you a settlement based on the car’s actual cash value (ACV), not what you paid for it. Since cars depreciate quickly, your settlement may not cover what you still owe on your auto loan or lease.
That could leave you with no car and a big bill to pay.
Gap Insurance is an optional auto insurance coverage for newer cars that can be added to your collision insurance policy. It may pay the difference between the balance of a lease or loan due on a vehicle and what your insurance company pays if the car is considered a covered total loss. Without the proper coverage, the gap between what you’ve paid and what you owe can be substantial.
Contact our office today to find out more about this coverage!
