Do You Really Need GAP Insurance?


This question is asked by many potential car buyers. The answer rests entirely on how they are purchasing their car. While GAP insurance was not really needed in the old days of car buying, consumers are engaging in different purchasing habits nowadays. Most car buyers are taking out longer loans and also driving more miles on an annual basis. This results in rapid depreciation on the vehicle.

If that vehicle gets into an accident, the insurance company is only going to pay what the market rate is on the used vehicle, not what is left on the loan. This is known as the "gap" and is the reason that GAP (Guaranteed Asset Protection) insurance was invented.

So the short answer is yes, if you are like most buyers of new cars, you will want to have GAP insurance. Ask about it at Courtesy Ford Lincoln in Altoona!
Categories: Finance

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