When you buy or lease a new car or truck in Portland, Beaverton, or elsewhere in Oregon and beyond, 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 one year. Standard auto insurance
policies cover the depreciated value; in other words, insurance pays the current market value of the vehicle. If you finance the purchase of a new car and only put down a small deposit down, the amount of the loan may exceed the market value of the vehicle in its early years of ownership. Gap insurance is available to cover the “gap” between what a vehicle is worth and what you owe on it.
It’s a good idea to consider buying gap insurance for your new car or truck purchase if you:
- Made less than a 20 percent down payment.
- Financed for 60 months or longer.
- Leased the vehicle.
- Purchased a vehicle that depreciates faster than the average.
- Rolled over negative equity from an old car loan into the new loan.
While the car dealer may offer to sell you gap insurance on your new vehicle, most car insurers offer it—and it typically costs much less. On most auto insurance policies, including gap insurance with collision and comprehensive coverage adds only about $20 a year to the annual premium.
At Fox Insurance Agency, we can work with you to make sure you’ve got the coverage you need, while at the same time using all possible credits and discounts to make that coverage affordable. Just give us a call at 503-277-2300, visit our insurance website 24/7 for great rates, or send us a note at info [at] foxinsure [dot] com. We want to help you meet your goals, and make sure what’s important to you is protected!
Information by the Insurance Information Institute.