Car values are plummeting, and the loss of your new car could leave you exposed for thousands of dollars. But protecting yourself is easy -- and reasonably cheap.  A weak car market isn't bad just for car manufacturers and dealers. If you're driving a late-model car, you may also be at risk.  Lower resale values for used cars mean your car is probably worth less than you think, and perhaps less than you owe. If your car is stolen or totaled, you may not get enough from your insurance company to pay off your lease or loan.  The insurance company will pay you what the vehicle is (currently) worth, and that's not necessarily the same as what you owe. It could be a lot less.  Fortunately, there's a cheap solution to this gap, and it's called GAP  (Guaranteed Asset Protection) insurance.  Chances are good you need gap insurance if:

 
Here's an example. You buy or lease a car for around $25,000. Several months down the road, it's totaled, but your insurance check covers only the car's current value, which is about $20,000. Not only do you have to find new wheels, but you're on the hook to the finance or lease company for a gap of about $5,000. If you rolled debt from your old loan into your new one, the amount you owe could be even larger.  Few people in this economy, with unemployment hovering around 10% and credit scarce, would want to have to buy a replacement car while facing thousands of dollars in expensive leftover debt. And if your finances are already shaky, the gap between what you owe and what you're paid might be enough to push you over the edge.
 
All is not lost if you do not have GAP insurance on your auto.  You may already have it on your auto policy and don't even know it.  Some policies state that they will payoff a loan regardless of the value.  This isn't the norm but you should check your policy.  If you do not have it and want to include it you can either check with your agent or look to the company that financed your car loan.  Gulf States can refinance your car loan that you have elsewhere and include the GAP insurance.  It is a one time cost and can be added to the refinanced loan!  Click here to get started.