Car Insurance Update

forum.abestweb.com

You know that when you buy a new car, its value will immediately go down as soon as you drive it off the store. All of a sudden, the car that you financed for $25,000 may now be worth only $20,000.

So if you could imagine that eventually you still have the car, but its value is considerably less than what you still owe. This is where gap insurance will come in. A gap policy covers the difference between what you owe the finance company and the value of the car. These gap policies are often required when you lease a car, and also helpful for the first couple of years after buying a new car.