You are required to have Oklahoma car insurance in place under state law. GAP coverage is worth considering when you have recently bought or leased a new vehicle. The minute you take possession of the vehicle and drive it off the dealer’s lot, it starts to lose value. By the time you have been driving your new vehicle for 90 days, it will be worth up to 30 percent of the selling price. Given the rapid depreciation of a car, it’s possible to owe more on the vehicle than what it’s worth.
This is an important consideration for insurance purposes, since the insurance company will pay out for a total loss according to the vehicle’s Blue Book, or cash, value, not its replacement cost or even what you paid for it. You will still be responsible for paying the difference between the amount owing on the car and the figure the insurance company pays out on a claim if the car is totaled. GAP insurance comes into play in this type of situation. It covers the gap between what the car is actually worth and the amount of an outstanding loan or lease.
GAP coverage may not be offered by all Oklahoma car insurance companies. It is available at dealerships, though, and you may be offered this protection when you buy your car. If you want to add it after buying the car, look online to find a company that can sell you a standalone policy.