Information provided by AAA’s preferred Insurance partner: MAPFRE Insurance
There’s nothing like that feeling of purchasing a brand new vehicle and driving it off the dealership lot. The problem is that most new vehicles lose 20% of their value within a year.
So what happens if you get into an accident or your new vehicle is stolen and you need to file a claim during that first year timeframe? Having gap insurance will typically cover the difference between what your vehicle is currently worth and the amount you actually owe on the loan or lease.