Everyone knows that finding good car insurance providers is one of the most important aspects of owning a vehicle. After all, this is required in most states. What’s not mandatory is GAP insurance for cars, but it still serves a significant purpose. Recently, one car salesman told a story of a person trying to buy a new car and totaling her old one before making their first payment on the new vehicle. Sadly, now they owe a large sum of money. 

GAP insurance for cars is something more divers should consider beyond their standard providers

Recently, Joseph Rodriguez took to his popular TikTok account to recount a story from one of his customers. He began his video, “I just had a customer who totaled her car before she even made her first payment.” He went on to say that the woman had a Hyundai Elantra that she was still paying on. However, she had come in to get a new vehicle. Early on, he told her the importance of getting GAP insurance in addition to coverage from one of the traditional providers. 

The story continues, and the car salesman says he received a text from the customer informing him she’d had an accident in the car she already owned. At that point, she had already received the total loss letter that car insurance providers are known to send out. Sadly, she had not gotten GAP coverage for the vehicle. According to the video, the car was worth $12,500, but she still owed the bank $16,000. Without GAP coverage, she was on the hook for that $16k. 

The car salesman described how this impacted her getting into the vehicle she was planning to buy. It seems she planned to simply trade in the previous one, but she was no longer able to take this measure. In the end, she couldn’t get another car, and her Hyundai Elantra was also rendered undrivable. Though it’s an extra expense beyond car insurance providers, having GAP coverage comes in handy for drivers. 

Check out this recent article explaining GAP insurance for more reading.