25th Nov 2009 by Amelia Timbers
Gap insurance is car insurance that pays the difference between the actual value of a vehicle and the amount you still owe on the lease you took out for it. For example, you crash your car and it is now very near worthless, but you bought it for $45k, and still of $20k. Gap insurance pays the difference between worthless and $20k. Or, if you are leasing a car, Gap insurance will pay in that case also. Gap insurance is not a typical automotive insurance product and you may have to shop around to find a provider. Another place to check is the company that you have your car loan from; occasionally these institutions also offer Gap insurance or pair it with car loans.
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