Re: Gap Insurance
10-14-2012 08:36 PM
If you do not put much down, I highly recommend getting gap insurance. I purchased a brand new 2012 Jeep Grand Cherokee at the end of May this year. In August, I was hit by an 88 year old woman pulling out of a shopping plaza who didn't stop at the stop sign. She had pressed the gas instead of the brake and hit the side of my car, then pulled out behind me so she could pull over behind me when she proceeded to hit the gas instead of the brake again and rearended me, causing a lot of damage to both the side and back of the car. Two months later, my car is still in the shop and I am driving a rental. Once the diminished value of the car is determed after it is fixed, it could put me over the amount needed for them to total it, in which case my gap coverage will kick in.
The point is, even if you are a safe driver, others may not be. If you stand to lose a lot of money if your new car is wrecked several months later, gap insurance helps. If you don't have it and your loan is worth more than the vehicle is valued at after the wreck when it is appraised, you are responsible for the difference.