If you have financed your vehicle, gap insurance is worth considering. When a West Virginia driver buys a car, it starts to depreciate in value the minute it is driven off the lot. The financing company will likely insist on the car being protected by collision and comprehensive coverage as a condition of advancing the loan.
It’s possible to owe more on your car than what it’s worth. If you are in an accident and your vehicle is totaled, the insurance company will only write a check for its cash value – not what you paid for it or even the amount you still owe. Gap insurance coverage is meant to cover the difference between the cash value of your car and what you still owe to the financing company.
The dealership may offer this coverage when you make the financing arrangements, but you can also get gap insurance from your car insurance provider. If you decide to buy gap coverage from the dealer, you may be looking at making a one-time payment; an insurance company will add it to your premiums so you can pay for it with your other coverage.
The question of whether you need gap insurance is one that you need to consider carefully. Unless you want to be one of the West Virginia car insurance customers who is stuck making payments on a car that you can no longer drive, it makes sense to put it in place.