Many loan gap policyholders wonder if their insurance becomes void if they are ever more than thirty days late with an auto payment. The answer to this common question is that a gap insurance policy is not voided by a late car payment. Gap insurance is not automatically cancelled when a policyholder is behind on a payment, but it will matter if the vehicle is ever totaled before the payments are brought up to date, the payouts from your coverage will not include those overdue payments though. What gap coverage…
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Does gap insurance make sense for you?
By purchasing gap insurance, the financial burden on the depreciating value of cars can be resolved. A new car’s value decreases by the time you drive it off of the dealer’s lot, and can actually be reduced by 30% during its first year of ownership. The decrease in the value of new cars can lead to a huge financial burden, as you can end up having a debt on your car loan that is larger than the actual worth of the car. Should you be involved in an accident or…
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