How important is buying gap insurance on a 2021 Chevy Malibu?
I'm purchasing my 2021 Chevy Malibu for $24,000. I have a low APR and a 15% down payment of $3,600. The gap insurance would be $12 a month. I'm wondering if it's worth the monthly payment.
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Answered on Apr 20, 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.
“When you purchase a new car, its value depreciates over time. This means you could pay $24,000 for your vehicle now, but it may only be worth $20,400 in a year. If your vehicle is in an accident and marked a total loss, you could end up owing more on your loan than what your insurance paid out.
Gap insurance covers this difference. While it may seem like an extra fee on an already large purchase, it can protect you if anything should happen to your vehicle.
Many car insurance companies offer gap insurance. You may be able to find a carrier that will sell you gap insurance for less than your lender’s cost of $12 a month.
Look at larger carriers like Travelers, Progressive, or State Farm. They offer competitive rates and could save you money in the long run.
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