Plain and simple: being underwater on an asset you own sucks. Unfortunately, becoming underwater—owing more than a car is worth—on a car is a reality. Cars are driven. Things happen. Values depreciate.
To help our customers protect against ever becoming underwater on their car, we’re working with Ally to now offer gap insurance on all cars sold through Shift.
What is gap insurance?
Gap insurance helps you cover the “gap” in case you ever owe more on your car than what it’s worth.
This is useful in any situation of total loss of your vehicle, such as a wreck or theft. In these cases, you receive a lump payment from your insurance company. Often, that payment won’t be sufficient to cover what’s owed on the vehicle. That’s where gap insurance comes in.
How it works: an example
Let’s say you bought this sweet Nissan Rogue for $18,000 and borrowed $15,000 to buy it. On a rainy winter night, you get into an accident that totals the car (this actually happened to a customer last month). Your insurance payout is $10,000, which means you are underwater by $5,000. Right? Not with gap insurance.
With gap insurance, the amount owed by you would be waived completely. Plus, any deductible (the amount you pay to make a claim) on your insurance payment would also be covered, up to $1,000.
How do I get gap insurance?
Just begin your payment for a car on Shift and you’ll see option to add gap insurance. If something happens and you ever need to make a claim, just get in touch with us and we’ll help you navigate Ally’s claims process.