Reader question:

What is gap insurance coverage?

Lan

Good question.

It’s a very good thing to have, that’s what it is. Gap insurance is the coverage that kicks in when all of your other coverage runs out. In order to get gap car insurance coverage, you need to have the maximum amounts of all the other coverage. That means that you can’t get it on your car if you don’t also have, say, collision and uninsured motorist coverage.

If you are in the process of buying or leasing a car, getting good gap coverage is a great idea. The reason for this is that if you total your car, your car insurance company will only pay you for the worth of your car so that you can go buy another one like it. However, if you’re still buying your car, what they give you might not even be enough to pay the rest of your loan, and then you’re also out a car.

Cheers,

Fashun Guadarrama.