Yep I believe it’s that exciting…. You know that feeling you get when you buy a brand new car? You know the feeling of wrecking a car? Think about how horrible it would be to get a brand new car or truck and in just a few days you wreck it! This happens a lot.

It might also surprise you that even though you just paid $20,000 for your brand new car it’s only worth $14,000 in the eyes of the insurance company. Believe it or not the minute you drive your brand new car off the lot it depreciates. So the insurance company gives you the $14,000 for your car, and you now owe a remaining $6,000 on a car that you aren’t driving because it’s been totaled. Well this unfortunate coincidence happens more than you think and that wouldn’t happen if you had GAP insurance. You see GAP insurance will insure you for the difference between what you would owe on a vehicle and what an insurance company says it’s worth. Like I said your car will depreciate the minute it’s driven off the lot so it’s imperative you get GAP insurance. The one and only reason you might not want GAP insurance on your brand new car or truck is if you paid for it with cash and don’t owe the bank anything.

You do have a few options when searching for GAP insurance. You can get it through the dealership, your insurance company or in some cases the bank will roll it into your loan. Just make sure that you do your research so you can get the best deal possible.

Thanks to Brandi Hodge for contributing.