Learn how gap insurance protects you financially by covering the difference between your car's value and what you owe in case of total loss. Discover when to buy it.

There’s nothing quite like the feeling of driving a brand-new car off the lot. The spotless interior, the gleaming paint, the distinctive “new car smell”-it’s a moment of pure excitement. You have ...

Insurance companies pay the depreciated value of your car if it’s totaled or stolen, which might be less than your car loan balance. Gap insurance can cover the difference between the vehicle’s value ...

You’re driving off the lot in a new car — but the second you do, its value starts to drop. If you get into an accident or your car gets stolen in the first year or two, your auto insurance might not ...

Update: Article was updated to clarify purchase of used Tesla. In June 2024, Drea purchased a secondhand Tesla for her birthday, thrilled to own a prized electric car. However, she soon discovered a ...

What does Gap insurance cover you for? Gap insurance protects you when you buy a new car. It's designed to cover the difference between the amount your car insurer would pay out if your car was stolen ...

Learn how car insurers evaluate vehicle value to better negotiate your claim and find out why insurance payouts often fall ...