|
Gap insurance?
Hi all,
I am in the US, not sure how this question applies to those outside the US. When leasing or purchasing a car, there is insurance called Gap insurance that you can get. In a nutshell, if your car is totaled in an accident, it will pay the difference between the value of your car at that time and what you still owe on the loan (or lease). For example, you buy a new BMW for $70k, one year later you have an accident and the insurance company says it is totaled, and hands you a check for $48k, but you still owe $55k on the loan. Gap insurance pays you the $7k difference.
I think cars are currently depreciating faster during this pandemic (I don't have data on that, but it SEEMS to be the case), and that may continue for years after because of a global recession.
My question is, do you think Gap insurance is a better deal now? Is this protection worth it? If there is anyone out there that has it, what sort of price are you paying for it?
|