I used to think gap insurance was just another way for the dealer to squeeze a few extra bucks out of you, but after seeing what happened to my cousin, I’m not so sure anymore. She bought a new Corolla, put down a decent chunk, and then someone rear-ended her at a stoplight like three months later. Insurance payout didn’t even cover what she still owed, and she had to cough up almost $2k just to pay off the loan on a car she couldn’t even drive anymore. That was rough.
I get wanting to save money—trust me, I’m always looking for ways to cut costs—but honestly, gap insurance seems like one of those things that’s worth it if you’re not paying cash. Especially here, where cars are already expensive and stuff like flash floods or random accidents aren’t exactly rare. I guess if you’re planning to pay off your loan super fast, maybe you could skip it, but for most people, it’s probably just safer to have that backup.