It’s no secret that cars quickly lose their value after they’re purchased. Some cars depreciate more than others, which means your car’s actual value may be less than its average retail value. Getting into an accident can result in you receiving less than what you owe on your car or its value. At Land Home Insurance Services, we can help you get ahead of the loss of your car’s value with gap insurance. Here’s how.

What is Gap Insurance?

Gap insurance gets its name from the fact that it covers the gap between your car’s actual value and the outstanding amount on your loan. If you get into an accident that causes your car to be totaled by the insurer, you still owe the lender the balance of the loan. If your car is valued at less than what you owe, gap coverage pays the difference.

Why You Should Get Gap Insurance Coverage

Getting gap insurance is a smart idea if you have a loan that lasts more than 60 months or if you have little equity in the car. For example, if you’re 48 months into a 72-month loan, you still have 24 payments ahead of you. If you get into an accident at the 48-month mark, you still owe 24 more payments. If your car’s value is less than what you owe, you won’t be able to pay off the loan.

Get in Touch With Us Today to Learn More About Gap Insurance

At Land Home Insurance Services, we’re ready to help you find a gap policy that is right for you. Our agents search for different policies that fit your needs, provide quotes, and explain what each one offers in terms of coverage. Call us today to get connected with an agent near you.