![]() Buying gap insurance from a car dealership might seem convenient, but it can often end up costing you more in the long run. Gap insurance is much cheaper through a car insurance company compared to a car dealership. Gap insurance adds an average of $60 a year to your car insurance cost, according to Forbes Advisor’s analysis of gap insurance costs from large insurance companies.Īnd when you no longer need gap insurance-because your loan balance is about equal to or lower than your vehicle’s value-you can drop it from your policy. For example, Geico and Farmers don’t sell gap insurance. Not every car insurance company sells gap insurance and it may not be available in every state. Many car insurance companies that offer gap insurance, such as: Insurance Companies That Sell Gap Insurance You can typically buy gap insurance from: For example, if you owe $15,000 and your car’s value was $17,000, there won’t be a gap if your car is totaled or stolen.Īnd if you sell your car, you should cancel gap insurance. That’s because there will be little or no gap insurance payout possible. Once the amount you owe is less than your car’s value, or only a little more, there’s no reason to keep gap insurance.
0 Comments
Leave a Reply. |