Which one should I get for my Acura, gap insurance or new car replacement insurance?

I'm going to be buying a 2019 Acura. My credit union offers gap insurance and my car insurance company offers new car replacement insurance. Can I get both? Or is one better than the other?

Answer provided by
Emily Maracle
Answered on Apr 30, 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.
Gap insurance and new car replacement insurance both provide additional coverage if your vehicle is totaled.
Gap insurance covers the difference when you owe more on your loan than your vehicle is worth.
New car replacement insurance covers the replacement of your vehicle. As new vehicles can depreciate quickly, new car replacement insurance ensures that you receive an amount close to the original purchase price, which would give you the ability to buy a similar make and model.
Most people feel that either gap insurance or new car replacement insurance is more important to them and go with one. It is possible for you to add both coverages to your policy for your Acura, but be mindful that both have a lifespan.
New car replacement insurance is typically only offered on brand-new vehicles.
Gap insurance no longer applies once your loan balance is less than the actual cash value of your vehicle (purchase price minus depreciation).

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