How Much Does Gap Insurance Cost Per Month
How Much Does Gap Insurance Cost Per Month?
What is Gap Insurance?
Gap insurance is an optional insurance coverage that can be added to your existing auto insurance policy. It is designed to help cover the difference between the actual cash value of your car and the amount you still owe on the car loan if your car is totaled or stolen. Gap insurance pays the difference between the value of your car when it's damaged or stolen and the amount that you still owe on the loan.
Why Do I Need Gap Insurance?
Gap insurance is particularly important if you've taken out a loan to purchase the car, as the value of the car may depreciate faster than the loan is paid off. This means that if your car is totaled or stolen, you may still be liable for the remaining balance of the loan, even though the car is no longer in your possession.
How Much Does Gap Insurance Cost Per Month?
The cost of gap insurance will vary depending on your individual circumstances, such as the age and value of your car, the amount of your deductible, and the type of coverage you choose. Generally, gap insurance can cost anywhere from a few dollars per month to upwards of $20 per month.
Do I Need Gap Insurance?
Whether or not you need gap insurance will depend on your individual circumstances. If you're taking out a loan to purchase a new or used car, or if you're leasing a car, gap insurance is likely a good idea. If you're paying cash for a car, or if the car you're buying is several years old, you may not need gap insurance.
Where Can I Get Gap Insurance?
Gap insurance can be purchased from most major auto insurance companies. You can either purchase gap insurance from your existing auto insurance provider or shop around for a new provider that offers gap insurance. It's important to compare rates and coverage options to make sure you're getting the best deal.
Final Thoughts on Gap Insurance
Gap insurance can be an important coverage option to have if you're taking out a loan to purchase a new or used car. It can help protect you from financial liability if your car is totaled or stolen and you're still liable for the loan balance. Gap insurance typically costs a few dollars per month and can be purchased from most major auto insurance companies.
