You’ve heard the saying that when you drive a car off the lot, its value immediately drops. Whether immediately after purchase or over time, it’s possible that your car may end up being worth less than what you still owe on the loan. So, if your car ends up getting totaled in an accident, the money you receive from insurance proceeds may not be enough to pay off your debt. There is insurance coverage that specifically addresses this problem. It’s called gap insurance. There are a few MA auto gap insurance options to consider.
Buying Gap Insurance With Your Car Purchase
Most dealerships will offer gap insurance to you when you purchase a car. In fact, some may even offer to roll the cost of that insurance into your loan. The amount of this insurance is usually pretty high since it’s an up-front cost. Plus, if you’re rolling it into your loan, you will also be paying interest on that cost. Before opting to purchase this, call your insurance company.
MA Auto Gap Insurance Through Your Insurance Company
Most auto insurance companies offer Gap Insurance. It’s usually quite affordable too. Since you need to have your car insured before picking it up from the dealership, you’ll be communicating with your insurance company anyway. Be sure to ask about gap insurance at that time. You’ll be pleasantly surprised at the low cost. Purchasing from your insurance company will save you from the large up-front cost of buying it from the dealership.