How to Buy a Used Car
What is GAP Coverage?
GAP insurance is the difference between the actual cash value of a vehicle (purple line) and the balance still owed on the financing (orange line).
Why should I get GAP Coverage?
If you get vehicle financing and your vehicle is a total loss as a result of a collision theft or natural disaster, GAP Coverage will payoff the remaining deficiencies and deductibles (Sometimes thousands of dollars) as your insurance company will only pay you for market value of the car.