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Submitted questions will be answered by an Arvest banker and may appear on the Arvest Blog.

"What is Gap Insurance?"

Tuesday, May 20 at 09:26 AM

This is a common question and unfortunately many car owners only about the "gap" after their car is stolen or declared totaled from an accident - and then finding out they are left with debt not covered by their auto insurance.

The Gap is the difference between the actual cash value of your car and what you still owe on your loan. If your car is stolen or declared totaled, your auto insurance company will pay you the actual cash value of the car. Without Gap Insurance it is possible that this amount will fall short of covering what you owe on your vehicle. As if losing your vehicle in an accident isn't bad enough, it can get much worse if you still have to pay hundreds or thousands of dollars on a car you can no longer use!

If you have further questions or want to avoid getting caught in the "Gap", contact a nearby Arvest location and ask for a consumer loan officer about your particular situation.

 

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