Protect Yourself with GAP Insurance

If you are taking out a loan for an expensive vehicle over the course of several years, you should strongly consider getting GAP insurance. This insurance will protect you against having to be responsible for paying off the full amount of the loan in case your car gets severely damaged, destroyed or stolen.

The way GAP insurance works is the following. Let's say your vehicle gets stolen and you had taken out a loan for $25,000 out on it. After several years due to depreciation, the market value of the vehicle has dropped. However, you are still responsible for paying the full $25,000 loan amount.

Your insurance company will probably only pay out the market value of the vehicle and not the value of the loan. This may leave you responsible for paying off thousands of dollars in loan amounts at a time when you can least afford it.

If you had GAP insurance, the gap between what you owe and what the insurance company paid you would be fully covered. You would not owe any money on the loan you took out since the GAP insurance would pay for it.

Talk to a representative at Audi Livermore if you would like to add GAP insurance to your current loan. We can also provide you with more info on GAP insurance.

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