Picture this: you buy a new car, taking advantage of low financing and no down payment. A month later, you get into an accident. In this scenario, what you owe on the car is greater than what your car is worth. In other words, theres a "gap" between the vehicles value and your loan -- and youre responsible for the difference. This is why gap insurance exists. Gap insurance covers the gap between what your vehicle is worth and what you are actually on the hook for in regard your ...

If youre about to spring for a new vehicle, you may be wondering about the various warranties and coverage offered through the dealership and your insurance company. Specifically, you may be hearing about "New Vehicle Replacement Coverage" - and wondering whether thats something you should ask your agent about. While we always recommend talking to you agent about any insurance-related questions you have, heres a brief look at New Vehicle Replacement Coverage: What it is In the event of an ...