Car Insurance Questions

You may already know that the second you buy a new car it loses some of its value. When you get car insurance the insurance company will cover you for whatever the actual cash value of the car is.

So, if you were to buy a new car and crashed the car on your way home your insurance company would pay whatever the cash value of the car is which would be less than what you just paid for the car.

If you financed your car purchase you may still owe more on your car than your auto insurance company is willing to pay. Gap insurance would cover the “gap” between what you owe on your car and what its actual cash value is.

The video above is a brief news story that goes into a little more detail about gap insurance for your car and may help you decide if gap insurance is something you need.