Secure Your Car Investment Gap Insurance Secrets Revealed

Real-World Example

Consider a scenario where you purchase a car for $30,000 with a $2,000 down payment. After a year, the car’s value depreciates to $24,000, but you still owe $27,000 on your loan. If the car is totaled, your standard insurance will only cover the $24,000, leaving you with a $3,000 gap. With gap insurance, this $3,000 would be covered, saving you from a financial burden.