rental car insurance

So imagine that this same car is totaled within the first year or two of owning it. “That’s OK,” you think. “I have collision coverage, which will pay me enough to pay off my car loan and get a new car.”

But then you find out the insurance company sets the value of your car at considerably less than what you still owe on the car. Now you are not only without a car, but you still have to finish paying off the finance company.

This is where gap insurance comes in to save you. A gap policy covers the difference between the value of your car and what you owe the finance company. Gap policies are often required when you lease a car and are a good idea for the first couple of years after you buy a new car.