Gap Insurance – Should You Add it to Your Policy?

The moment you drive a new car off the lot, it starts to depreciate. In fact, most cars lose 20 percent of their value within a year. Gap insurance is an optional, add-on car insurance coverage that can help certain drivers cover the “gap” between the amount they owe on their car and the car’s actual cash value (ACV) in the event of an accident. A car’s actual cash value is the car’s monetary value at the time of the accident, not the car’s original price.

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