Is gap insurance really worth the money?
Should I get gap insurance on a new car? I'm in the process of buying a car on an 84-month term. My credit union lender keeps telling me that I should get gap insurance, but I'm not sure if it's worth it.
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Answered on Jul 21, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
“Getting gap insurance on an 84-month loan is definitely a good idea.
Because the term of your loan is so long, you’ll be upside down on it for a majority of the loan. If you were to get in an accident, the value of your car would likely be below the amount you owe on the loan.
Gap insurance covers the difference between these two values. If you want peace of mind or you’re accident-prone, gap insurance is definitely worth the investment.”
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