“A vehicle’s value begins to depreciate about 15% to 20% in the first year. This means that it is fairly likely that your brother’s new vehicle will be worth less than what he currently owes on his loan.
Gap insurance can help cover that difference if the vehicle is marked a total loss by his insurance company.
While many dealerships and lenders offer gap insurance, his car insurance company may be able to offer a lower price as part of his policy. Many carriers offer gap insurance.
Your brother can request quotes from multiple carriers, or he can reach out to his current carrier to see if they offer it to ensure he pays the lowest price possible. “