Buying a New Car? Here’s What the Dealer Won’t Tell You
The process of selecting a new car can be fun. You test drive different cars, negotiate a good deal and then sit in the finance office to finalize your deal. It is there in the finance office that you will be offered what is known as gap insurance.
Gap insurance covers the difference between the actual cash value of your car (hint: it drops as soon as you buy the vehicle) and the amount of your loan. This means, should something happen, your insurance will pay out for the current value of the car, and your gap insurance will pay off the rest of the balance on your loan. It’s an incredibly valuable and important type of coverage, but you shouldn’t get it from the dealership!
Dealerships often don’t mention it, but you can purchase gap insurance from your insurance agent. Almost always, you’ll be getting a better deal with your insurance agent, typically less than $20 a year. This is because dealerships often make a large amount of commission off of your policy premium. Your insurance agent can shop around to make sure that you get the best deal at the very best value. Talk to your trusted, local insurance agent and see what we can do for you! Call 740-656-5119 or Contact Us.