It’s a good idea to purchase gap insurance (also known as Guaranteed Auto Protection insurance) which protects you from paying the price of depreciation if you’re involved in an accident. With this protection, your insurer will pay the difference between your shiny new BMW’s actual cash value
Elephant Insurance offers gap insurance as a policy add-on. You may also decide to purchase this coverage through your bank, loan provider, or credit union. However, not all drivers benefit from gap insurance.
Gap insurance may not be right for you, if:
You plan to pay for your car upfront
You plan to put more than 20% down at the time of purchase
You plan to pay off your car loan within five years
You don’t have a full coverage car insurance policy
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