What Is Gap Insurance? Why do I need it?
Total loss of your vehicle can leave you with unexpected costs If you lose your vehicle to theft, fire or an accident before you’ve finished paying for it, you may be stuck with negative equity. Your vehicle will have depreciated in value and your primary auto insurer may not cover everything you expected. This could leave you owing the difference between your remaining car payments and what your vehicle is now worth (negative equity). This could be thousands of dollars – the GAP program covers that! What you owe What your primary auto insurer will pay Global Equalizer Payout Here’s how it works: Vehicle loan What you owe What your vehicle is now worth
Your remaining balance and no car to drive:
|What You Owe:||$34,900|
|What Vehicle Is Now Worth:||$27,900|
|Your remaining balance and no car to drive||$7,000|