You just purchased your car, and are ready to enjoy your new ride. You feel secure in your new car because you have "comprehensive" car insurance. There are times, unfortunately, when you need something extra.

Let's say you total your new car, for instance. Unless you have GAP insurance, your insurance will likely only reimburse you for the market value of your car. Market value, even on a new car, can be significantly less than the value of your loan. You can wind up making payments on a car that's been ruined.

"negative equity" got me like ?? ?? #adulting

— (@adulting101how) September 25, 2017

GAP insurance, for lack of a better cliche, fills in the gap. You'll receive money to cover the difference between the value of your car and the loan you used to buy it. You'll be able to move on for your accident with a clean financial slate.

GAP insurance is an important protection. If you're interested in getting some with the purchase of your new car, contact Montgomery Lincoln in Cincinnati, OH. Our finance experts can tell you everything you need to know.

Categories: Finance