Nobody wants to go upside down on their auto loan, but it’s the sort of thing that happens all the time. The most common way to do that is to purchase new vehicles on a longer-term loan where depreciation hits hard enough early on to make the purchaser owe more than the vehicle itself is actually worth. It also can happen when someone rolls an old auto loan into the purchase of a new car.
Whatever the case, being upside down on a loan is a temporary problem—until the owner of the vehicle gets in an accident, and insurance won’t come anywhere close to covering the full value of the totaled automobile.
It is for this reason that gap insurance exists. If you owe more on a Ford F-150 or Ford Expedition than the full value of a vehicle after a total loss, gap insurance will cover the difference to make sure you can recover from the accident and start fresh with one of the new or used Ford vehicles for sale here at Van Horn Ford of Oconomowoc instead of muscling on with two car payments.
Of course, not all auto insurance policies automatically come with gap insurance, so if you think this is something you might need, we strongly suggest that customers in Hartford, WI reach out to their insurance agent any time they purchase a new vehicle. While our professionals can answer some basic questions about gap insurance, it’s the insurance agents that will know most about them and provide you with quotes to determine whether it’s a worthwhile investment.
In the meantime, having that coverage can help you enjoy whatever Ford model you purchase without fear of getting stuck with payments on a vehicle you no longer are driving.