GAP Insurance (Guaranteed Auto Protection) and loan / lease coverage, two of the most important options of insurance of the vehicle you’ve heard.
Most drivers assume a collision and comprehensive coverage provides comprehensive protection if their vehicle is stolen or €. But if your new vehicle financed or leased, and experience a total loss, you may be in shock.
Gap insurance will help you dig the hole Gap insurance covers the difference between what you still owe on the car and what your policy says that a value of up to 125% of the MSRP.
How long do I have coverage gap? The moment the car salesman hands you the keys written to the value of your new car by 22% on average. If you have a low down payment with an extended term of the loan mix 5-7 years, you should plan your stay with a difference in your insurance coverage for 2 ½ to 3 years. Once the value of your car, truck or motorcycle news, the vehicle exceeded actual cash value, you are free to call your insurance away and tell them to drop the part of your coverage gap.
To find out when the value of your car loan balance to achieve parity, you can periodically check the value of your car on KBB.com and compare them to repay the loan amount available at your bank.