Gap Insurance protects clients by relieving them of stressful situations. Car owners, you can relax because they've got your back -- especially when you incur losses from an accident or theft, yet regular insurance compensation covers only part of the amount you still owe."negative equity" got me like ?? ?? #adulting https://t.co/4it7FAuTp2
— Adulting101.how (@adulting101how) September 25, 2017
Such a situation arises when you purchase a vehicle on credit, meaning that the value of the car will be less than the payment still owed. Using myself as an example, I will demonstrate how Gap Insurance works.
Let's say the value of my car on the fair market is at $25000, but when I bought it new, it cost $30000. If I incur any loss that completely damages my vehicle, I will be compensated $25000 only. Unfortunately, I still have an extra $5000 to pay on my loan, and the car is gone.
The word gap in Gap Insurance means compensation of the difference, and in my case, the difference is the $5000. Gap insurance is here to secure your future do not be afraid to purchase the car of your dreams.
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