Does gap insurance work on a personal loan?
I was offered an unsecured loan to buy my vehicle. I want to get gap insurance with my insurance company, but I'm not sure if I'll be eligible with a personal loan. Should I try to find a different lender or type of loan?
“You should first reach out to your current car insurance company to find out if you would be eligible for gap insurance with a personal loan.
In most situations, gap insurance is only available on vehicles with lienholders or lessors. Since an unsecured loan is considered a personal loan, you may not be eligible.
Check with the lender to see if they offer gap insurance on the loan. If they don’t, consider finding a different type of loan or lender.
Unsecured loans are usually reserved for people who have good credit and are low-risk. You most likely will be eligible for a different loan that will allow you to get gap insurance.
You can also shop around with various carriers to see if you’d be eligible with a personal loan. Even if your current carrier won’t sell gap insurance to you, another carrier may be willing to offer you coverage.”
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