How do I get a gap waiver?

My dealership recommended I get a gap waiver on my new car. How do I get that? My car insurance offers gap insurance; is it the same thing?

Answer
Both gap waivers and gap insurance are used interchangeably, but they do have distinct differences.
A gap waiver is a term that dealerships or lenders use, while gap insurance is a term often used by insurance companies. Typically gap insurance through your insurance company is cheaper.
Both essentially have the same function: in the event your car is totaled, both will pay the difference between the actual cash value of your car and the remaining balance on your loan after the insurance company payout.
If your current car insurance company doesn’t offer gap insurance, consider switching to a new company. Download the Jerry app to compare rates from top insurance companies. Jerry helps you find the best rate for your new insurance and gap insurance policies.
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Emily Maracle
Answered on Sep 17, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
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