When you buy or lease a new car or truck, the vehicle starts to depreciate in value the moment it leaves the car lot. In fact, most cars lose 20 percent of their value within a year. Standard auto insurance policies cover the depreciated value of a car—in other words, a standard policy pays the current market value of the vehicle at the time of a claim.
If, when you finance the purchase of a new car and put down only a small deposit, in the early years of the vehicle's ownership the amount of the loan may exceed the market value of the vehicle itself.
In the event of an accident in which you've badly damaged or totaled your car, gap insurance covers the difference between what a vehicle is currently worth (which your standard insurance will pay) and the amount you actually owe on it.
It’s a good idea to consider buying gap insurance for your new car or truck purchase if you:
You depend on your car. But big unexpected repairs can happen after your factory warranty expires. Mechanical Repair Coverage (MRC) can help you limit the cost of any covered breakdowns. You pay only the applicable deductible, if any. MRC can help lighten the financial burden for you and the people you care about. Get MRC today so you can worry a little less about tomorrow
SEG Federal Credit Union is Federally Insured by NCUA and an Equal Housing Lender. We do business in accordance with the Fair Housing and Equal Credit Opportunity Act. NMLS# 452612
*APR = Annual Percentage Rate. Rate based on creditworthiness and term of loan. **APY = Annual Percentage Yield. Rates are subject to change at any time and are not guaranteed. We may provide links to third party websites. The Credit Union has no control over any other website and is not responsible for the content, accessibility or security of any site other than this one. Users assume all responsibility when they go to other sites via the links on this page.