Written by ysdata on February 15, 2009 – 4:32 am
If you watch the news, you don’t need a reminder that what’s here today can be easily gone tomorrow. A message especially important if you’re refinancing a new car. Because the second that new car leaves the lot, it becomes a used car. It can also be worth less than the loan amount. This is a situation called “upside down”. That’s where Gap Insurance kicks in.
What is Gap Insurance?
Basic you refinance a car for $30-$40 thousand, you drive it off the lot and your new car is now worth 10% less. If you were to get into an accident, while you’re “upside down” that 10% less would be lost. Gap Insurance makes up that 10% or the gap between what the car is worth and what you owe.
Gap Insurance is not for everyone. Weight factors to include your drive habits and road conditions. If you want gap insurance may sure to shop around for the best rates.
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[...] to save on your auto insurance. Also, have you ever heard of GAP insurance? If not, read “What is Gap Insurance?”. This is another article I wrote explain who needs gap insurance and what gap insurance [...]