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GrooveCar.com

Loan Rates

New / Used Auto as low as 2.5%
15 Yr Fixed Mort as low as 3.625%
HELOC (Qtrly Adj) as low as 3.25%
Personal as low as 9.9%
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GAP Insurance

You Have Auto Insurance, But Are You REALLY Covered?

Gap Coverage Protects "Upside Down" Car Buyers

After a home, a new car is the largest purchase many of us ever make.  With such a big part of your financial worth riding on four wheels, a totaled or stolen vehicle may break not only your heart, it could break your budget, too.  As many drivers have learned only after it's too late, a standard auto insurance policy might not provide all the financial protection you need.  If the value of  your car is less than the balance of your auto loan, you're "upside down" on your loan, and there's a gap that isn't covered.  That difference is what a special type of protection, called Gap coverage, is designed to cover.

To see just how you could end up in an upside down situation, consider this scenario, in which your car has taken a trip downriver during a record-breaking flood just one year after you drove it home from the lot:

· Amount you owe on your auto loan $20,000

· Your car's book value at the time of loss $15,000

· Your insurance deductible $500

· Amount the insurance company pays you $14,500

· The gap $5,500
 

Gap protection is intended to cover the difference between the value of your car at the time it's totaled and your outstanding loan balance, which you still are responsible for paying even if your car is sitting under 10 feet of water.

 

Certain exclusions and limitations apply.