Gap Insurance for Financed or Leased Cars: Do You Need It?
Published On: November 15, 2006
October 2006 (Medialink) – People carry auto insurance, in part, to protect themselves if their car is stolen or if it’s damaged or destroyed in an accident. But, sometimes basic insurance coverage isn’t enough and you may need something called “gap insurance.”
Auto insurance covers you for the actual cash value of your car – not how much money you actually owe the bank that loaned you the money to buy it. What that means is that you may find that the money your insurance company pays you on a claim won’t cover how much you owe. The difference is called the “gap.”
Some insurance companies offer gap insurance, but not all. It’s recommended you check with your agent to find out and determine if gap insurance is right for you.
Produced for Allstate