is a product intended to lessen your financial burden if you get in an accident. It pays the difference between your car when it’s totaled and the remaining loan balance.
For example, let’s say your car is worth $22,500 when someone hits you and it’s
. But your car loan balance is currently $26,500. The car insurance company will only give you the $22,500 actual cash value, and you’d have to pay the remaining $4,000.
That difference is just what gap insurance does: it covers the gap of the $4,000 so you don’t have to.
In some cases, it’s a great investment, especially if you have a history of accidents.”
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.