GAP Insurance - Do I Need It?
First off, what is it exactly that gap insurance covers? That's an easy question. Gap insurance covers the difference in value between what you owe on the vehicle, and what the vehicle loan is worth. In Canada, a vehicle is stolen every 3 minutes* In 2006 170,000 vehicle were stolen in Canada, the recovery rate is less than 50%.
Your primary insurance company may give you significantly less than what you owe on the loan. This can present you with a hardship to your family or bad credit rating due to the inability to pay the loan off or the ability to secure a new car loan. A Credithelpfinancial CSR can help you decide if it is good for you.
Is gap insurance a good value? For this question, you need to give consideration to just how much the gap insurance is going to cost you. Will it be an additional $5 per payment for the life of the loan? (Ask your Credithelpfinancial specialist) While that might not sound too bad, consider that by the end of a 60-month loan, you will have paid an additional $300 for something you may or may not use at all. Is $300 worth protecting your credit as well as your ability to get into a new car quickly? If you still owe on the totaled or stolen car then the amount will have to be added to the new vehicle. Remember this insurance covers you for the whole contract. There are different companies that offer this type of insurance. Ask a Credithelpfinancial representative what is best for you. There is insurance that just covers the car but not any additional monies like warranties or accessories added on to the vehicle.
Credithelpfinancial use only the best company which will cover the warranties and accessories and any negative equity (if you have carried it over to the new vehicle) you may have. It covers the whole loan!
Let Credithelpfinancial give you peace of mind on your loan ask a representative for details!!!!
*Source: Insurance Bureau of Canada www.ibc.ca