Let the buyer beware – I have seen numerous times a client walks in the office with a car purchase contract and they have a fee for Gap Coverage. I have seen these fees upward of $700, These fees are part of the total cost of the contract/car purchase and are typically financed. What is Gap Coverage? It pays the difference between the amount owed on the vehicle and value of the vehicle at the time of a total loss. Basically, Auto Insurance company pays off the loan balance. Your not suck with a car payment and no car.
What you need to know - Gap insurance is typically only needed for the first two years of the loan, after that the loan amount is less than the value of the car, Gap Insurance can be added to most auto insurance policies typically for $70 per year. Next time the car sales person tries to sell you the insurance please decline and give us a call. We can provide a Car Insurance Quotee in about 15 minutes and help you save $500. Our agency is always working on saving our client money.