If you're asking yourself do I need Auto Gap Indurance?
The short answer?
In fact, most lease agreements include Auto Gap Insurance into the cost of your auto lease. It's a requirement for high end vehicles, if not most vehicles being leased.
What about if you're not leasing a car?
Auto Gap Insurance is so commonly mistaken with other products being sold at F&I (the people who do you paperwork when you buy a car) that most people skip over it thinking that they'll be all set in the "unlikely" event of an car accident.
The truth is, if you're not putting a hefty down payment down on your car (which I am highly against anyway), you're putting yourself in a major liability situation if the payoff value of your car is way more than what your car is actually appraised for by your insurance company.
Drivers that put a lot of miles on their car and don't put any money down are at an especially high risk because they are further driving down the value of their car, yet not factoring the bank loan may well exceed what the insurance would cut them a check for if the car is:
- Totalled in an accident
Long story short?
Don't put yourself in a major negative equity situation,