If you’re worried about budgeting, good news! Gap insurance is not required in Massachusetts
. However, you may want to consider it after considering your finances.
When you take out a car loan
, your balance reflects the price you pay for the car, including sales tax. After you drive the car off the lot, your car depreciates somewhere in the neighborhood of 10%
, meaning that you lose value on the car.
If you’re in an accident, your car insurance company will only pay for the actual cash value of the car, which is less than the car loan balance. Without gap insurance, you’re responsible for paying the difference, even if your car is kaput. If you don’t have extra savings, gap insurance just makes sense.
Full coverage car insurance
is a requirement of most car loans, but it’s often expensive. Use the Jerry
app to compare rates for this coverage so you always get the best price possible.
Jerry is a licensed insurance broker and insurance comparison tool that collects quotes from over 55 top-rated insurers in just 45 seconds. After you find a great rate, Jerry can help you buy new insurance and cancel your old policy. Users save an average of $800+ per year on car insurance.