Augusta
VIP Contributor
The importance of taking out a gap insurance for your vehicle can't be overemphasized but you still need to be sure that you really need the Gap insurance coverage before going for it You need to understand some facts surrounding it to actually take an informed decision before going for it. You would need to find out if it worth it for you.
You need to know that Gap insurance coverage is only designed for leasing or financing a new vehicle. so you need to remember this when you're considering buying gap insurance,
Before you take out the Gap insurance you need to give it a thought on the amount of money you are owing on your auto loan compared to the value of your car. you need to know if you are still. owing more than your car is worth. Then make a rough estimate if when your car is totaled you can afford to pay the difference out of pocket but if not you may want to consider gap insurance.
So having gap insurance coverage can worth it more if you are in these below situations
You only paid 20 percent down payment on your car.. You have an auto loan that will take about 60 months or more and if your new car is on lease.
You need to know that Gap insurance coverage is only designed for leasing or financing a new vehicle. so you need to remember this when you're considering buying gap insurance,
Before you take out the Gap insurance you need to give it a thought on the amount of money you are owing on your auto loan compared to the value of your car. you need to know if you are still. owing more than your car is worth. Then make a rough estimate if when your car is totaled you can afford to pay the difference out of pocket but if not you may want to consider gap insurance.
So having gap insurance coverage can worth it more if you are in these below situations
You only paid 20 percent down payment on your car.. You have an auto loan that will take about 60 months or more and if your new car is on lease.
