What is gap insurance?

Gap insurance – what a strange name. What does it even mean? Gap insurance is something that can help protect you when purchasing a new vehicle.

Let’s break it down:
– You just bought a car for $20,000 with a loan for $18,000.
– Two years later your vehicle is worth $12,000, but your loan is still worth $14,000. – But then, you get into an accident and it’s a total loss.
– In this case, your gap insurance goes into effect to cover that $2,000 difference. – This allows you to come out starting fresh, able to get another car loan.

As always, contact your agent to learn more about gap insurance or to answer any questions you may have.

Mosher & Associates isn’t just insurance. It’s insurance, personalized. With offices in Argyle, Evansville, Monroe, and New Glarus, our Team of Specialists is ready to provide you with the best coverage for your unique situation. Check out our Mosher Assessment Process (MAP) at mosherinsurance.com/map/ to see how we can help you. Answer a few simple questions and we’ll start you on the path to insurance, personalized.