Gap insurance covers the difference between what you owe on a truck loan and what the vehicle is worth if it's totaled. Hunter Nelson walks through a real claim where a borrower owed $35,000 but the truck was worth $16,000, leaving a $19,000 gap that gap insurance covered. It's cheap and available through most lenders.
There's the, uh, the first thing to know. Couple other things to know on physical damage that is very, very important is gap insurance. Gap insurance is gonna come into play. Uh, you can get it on through your loan sometimes, but gap is gonna cover the gap between what you own the truck, excuse me, and what it's valued at. So if you guys owe $50,000 on the truck and it's worth $30,000, you have a $20,000 gap there. That is where gap insurance is gonna come into play. We literally just had a claim last week where the guy had a $35,000 loan he got $16,000 because that's what his truck was worth, and, uh, gap insurance covered the rest. So if you guys do not want to gap and cover the difference between that, I recommend getting gap insurance. It's very important. Some insurance companies do not offer gap insurance. Uh, obviously this will not be needed if you do not have a loan in your truck, it's all paid off, but I would highly, highly recommend gap because it's incredibly cheap
