So, you just bought a car. You’re pumped, you can’t wait to feel the wind in your hair and you are ready for the open road. Then you drive it off the dealership lot and someone t-bones you. Now you’re between a rock and a hard place—or a totaled car and a huge bill.
GAP Insurance with Southwest Louisiana Credit Union can solve this dilemma. Within the first few years of ownership, the value of your car will depreciate faster than your auto loan balance. If your new ride is stolen or wrecked after driving it off the lot, your typical auto insurance policy may only cover the actual value of your vehicle and not what you owe on it.
So let’s say you bought a car for $15,000, but after a year, it’s worth $9,000. If your car is stolen, then your insurance company may only reimburse you $9,000, even if you still owe $14,000 on it. That means you’re left with $5,000 in car payments to make up.
Now if you had purchased GAP Insurance, the policy would cover the $5,000 gap—or the difference between the money from insurance and the amount still owed.
Ready to learn more? For more information on GAP Insurance, please talk to your Southwest Louisiana Credit Union Loan Officer or call 337-477-9190.