What is Gap Coverage?
Gap Coverage will cover the remaining amount you owe. Sometimes, this price difference can be steep, and you’ll want to avoid paying out of pocket. For example, let’s say you bought a car for $20,000, and you have $15,000 in payments remaining. If the car is totaled, the car is now only worth $10,000. Gap Coverage would make sure you’re covered for that $5,000 difference between remaining payments and the car’s actual value. This optional coverage must be purchased at the same time as your car, and you must be the car’s first owner.