Anyone who drives a vehicle that it is leased or financed should have a gap insurance policy. Why? All vehicles after a short while are worth less than what the consumer owes the bank or the financial institution.

Should the vehicle get totaled or stolen, the insurance company will only pay the fair market value and not the amount owed to the bank. This is when the “Gap” Insurance comes into play. It will fill in the gap that it is left by the fair marker value of the vehicle and the amount owed to the bank.

In many cases that amount can be thousands of dollars. “Gap” Insurance can be paid in full or can be financed and included in the deal of the vehicle.