Gap insurance can pay out if the balance on your car loan is larger than the amount your insurance company will pay if your car is totaled Written By Written by Insurance Staff Writer, WSJ | Buy Side ...

You’re driving off the lot in a new car — but the second you do, its value starts to drop. If you get into an accident or your car gets stolen in the first year or two, your auto insurance might not ...

Insurance companies pay the depreciated value of your car if it’s totaled or stolen, which might be less than your car loan balance. Gap insurance can cover the difference between the vehicle’s value ...