10/07/2016
Leasing vehicles continues its popularity. And why not? Monthly rates are low, maintenance charges are often covered, and you are able to drive a new car or truck every 3-4 years.
But what happens if you're involved in an accident and the vehicle is totaled? If you made no down-payment when the vehicle was initially leased, you may owe extra money.
GAP insurance pays you for the difference between what you owe, and the value of the totaled vehicle. If you owe more than what the car/truck is currently worth, you have a "gap."
Typically, the car dealership or lending institution offer this coverage. Several car insurance companies also offer it.