What is Car Gap Insurance & How Does It Work?
Auto insurance may help you cover the damages that arise from being in an auto accident, but these policies typically only pay for the actual cash value (ACV) of your vehicle if it is totaled in an accident. If you owe more on your auto loan than your car is actually worth, this could result in you still paying for a car that you no longer drive. To avoid this, drivers should consider purchasing guaranteed asset protection (GAP) insurance to cover the difference between the amount that’s left on your loan and the ACV of your totaled car. Read more