No one plans on being in an accident. Sometimes it just happens. It is all part of life. There is nothing you can do about the accident. There is something you can do about how you protect yourself.

This is where Gap Insurance comes in.

It will supplement the necessary financial coverage your vehicle needs that your other insurance will not. When you get into an accident, your insurance company is only going to pay the fair market value of the car.

Your car may be worth about $50,000 before the crash. After the accident, the fair market value is going to go down because of the accident. Anytime there is an accident, the value depreciates. It may only be worth half now. The gap insurance will help to pay some of the out-of-pocket costs you will have with the accident, especially for those who still owe money on it.

This is an investment that most vehicle owners should consider making. This insurance will help cover some of the costs that you may be held responsible for without it. You can get it as a "rider" when you go to the dealership.
Categories: Finance

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