Many auto dealers offer low down payment options to sell more vehicles. Vehicles depreciate quickly. Early in the loan term you may owe more money than the vehicle is worth. This can be a serious problem if your vehicle is totaled early in the loan or lease term.<\/p>\n
Auto insurance companies pay the “actual cash value” (similar to “book value”) of your vehicle. The value may be less than the amount you owe on the loan or lease.\u00a0<\/p>\n
Say your dealer offers a sweet \u00a0“no money down” incentive on a $32,000 vehicle. You total it 3 months later in a crash. The book value is $28,000, but you owe $31,000 on the loan. The bank comes looking for $3,000. Uh-oh.<\/p>\n
Luckily, you bought loan gap coverage. Instead of paying the book value the insurance company pays you the amount you owe. You can start over again with no debt. Not bad, huh?<\/p>\n
Our Maine insurance agency<\/a> is ready with answers to your personal, business or professional liability insurance questions. For answers, or to get a Maine auto insurance quote<\/a>, or Contact Noyes Hall & Allen Insurance in South Portland at 207-799-5541. <\/p>\n","protected":false},"excerpt":{"rendered":" Many auto dealers offer low down payment options to sell more vehicles. Vehicles depreciate quickly. Early in the loan term you may owe more money than the vehicle is worth. This can be a serious problem if your vehicle is totaled early in the loan or lease term. An Example of Loan Gap Coverage Auto […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,24],"tags":[41,26,36],"class_list":["post-1684","post","type-post","status-publish","format-standard","hentry","category-car-insurance","category-finance","tag-claims","tag-qa","tag-saving-money"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t