Say you still owe money on your vehicle’s financing loan, and you get in an accident near DeWitt, leaving the vehicle totaled. Insurance will write you a check for the value of the car, but what happens if it isn’t enough to pay off the rest of your loan? You’re on the hook to pay the remaining balance.

That’s where gap insurance comes in. With gap insurance for a financed vehicle or a lease, if the worst happens and your car is totaled with money left on the loan or contract, gap insurance pays off the difference to the lender or financial institution. Seem a bit confusing? Let’s dive into why you may want or need gap insurance, what it covers and what it doesn’t, and other common questions to help you decide if gap insurance coverage is right for you and your vehicle.

Tags: auto insurance, gap insurance, gap insurance faq
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