How Car Warranties Save Used Car Owners from Hefty Repair Bills

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Cars may be highly advanced in technological and mechanical benefits, but unfortunately, this means they are expensive to repair. Drivers who are hoping to avoid hefty repair bills may find that a car warranty is the best way to save money.

The least expensive method of getting a warranty on a car is to purchase a pre-owned car which still holds its original factory warranty. This will provide protective coverage in case of damages or faulty car operations, instead of resorting to more expensive repair bills.

In this article, CARS Protection Plus covers the benefits of car warranties and how these can save used car owners from hefty repair bills.

Obtaining a Car Warranty

According to Eric Insurance.com, some car repairs can cost an average of over $2,500. In light of this, a warranty is There are a few excellent ways to choose a used car and benefit from a warranty at the same time. The list of these methods can be found below:

  1. Purchase a car with an older, remaining warranty
  2. Purchase a CPO car
  3. Add on an extended warranty

Cars Protection Plus takes a closer look at each of these methods of obtaining a car warranty.

Purchase a Car That Still Has Its Old Warranty

According to U.S. News, the method of getting a used car warranty that takes the least out of a driver’s wallet is purchasing a used car that still has its original warranty.

The best way to do this is to check the terms of the warranty before purchasing the used car in question. Often, the warranty from the original factory agreement is transferrable, and all it takes is a trip to the brand of vehicle’s dealership. 

However, if a used car is under a powertrain warranty, it will not transfer to a new owner.       

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Certified Pre-Owned Cars

A CPO car is a car with a Certified Pre-Owned warranty. The benefit of this kind of car is that not only are they typically close to brand-new, but the dealer will usually sell the vehicle with additional benefits added to the warranty. These can include trip interruption reimbursement and other extra perks.

The downside of CPO cars is that they are usually more expensive than a used car that does not come with a warranty, and it is typically only available at a new car dealership of the same brand.

Add on An Extended Warranty

An extended warranty is a product that can be added on to a vehicle, allowing the coverage of the warranty to extend past the lifespan of even CPO warranties. Extended warranties can be purchased in many places such as car dealerships, lenders, and car manufacturing companies.

The worth of an extended warranty for a used car is dependent on how well the type of warranty covers the brand of vehicle. This is because some warranties will only cover specific damages, and if the car brand typically experiences mechanical failure outside of those damages, the warranty will do a driver little good.

However, an extended warranty’s long life and coverage can be helpful and reduce the cost of repairs as long as thorough research on its benefits is conducted before purchasing.

In Conclusion

In conclusion, car warranties can save used car drivers thousands of dollars on repairs. Though purchasing a used car with a pre-existing warranty is the cheapest option, a CPO warranty may last longer, while an extended warranty can cover damages for an even greater amount of time. The best way to take advantage of these warranties is to understand their individual benefits

Benefits of Vehicle Protection Plans

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Buying a car is more than just picking out your favorite style and color.

There’s the price negotiation, the warranty to review, and the financing loan rate selection to make before even leaving the lot.

Then there’s a vehicle protection plan to consider. Vehicle protection plans are different than a warranty, though they usually have the same goal: a safeguard against potentially expensive and unexpected repairs.

Cars Protection Plus plans, also called vehicle service contracts or extended warranties, strive to maximize a driver’s peace of mind. They are offered by everyone from manufacturers and car dealerships to third-party providers.

While car insurance is a legal must for drivers, warranties and vehicle protection plans are not. But those who decide to invest in such a plan may reap some big financial rewards. 

Vehicle Protection Plans: The Top Benefits 

Protecting a Car’s Most Important Parts

Two commonly held vehicle protection plans are powertrain warranties, which cover a car’s vital systems and parts such as the engine and transmission, and bumper-to-bumper warranties, which are usually blanket coverage for pretty much every component in a vehicle.

The good news is that these plans will likely cover repairs on the most expensive repairs and systems that may be damaged due to age. However, both don’t cover everything.

Usually, such plans don’t cover vehicle elements such as batteries and auto glass or normal-wear parts like brake pads and rotors. But the most common car repairs are almost always covered, including fixes related to the suspension and electrical issues. Even air conditioning fixes are usually covered under these types of plans.

Deductible Flexibility and Other Perks

As with different warranties, vehicle protection plans usually come with multiple deductible options so drivers can pick one that fits comfortably within their budget.

Plans vary when it comes to perks. Some reimburse plan-holders for rental cars when their car when a repair is being made that involves a covered part.

Plans may even have you covered for up to 10 days. Vehicle protection plans increasingly include roadside assistance for emergencies all day and every day year-round.

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They Help When Away from Home

Having to deal with a car repair far from home can be frustrating and nerve-wracking. But many vehicle protection plans offered by dealerships honor the plan at their own licensed repair facilities across the United States.

In addition, if there’s a vehicle issue on the road, plans may cover the travel expenses, for example up to $500 a day for 7 days related to a covered repair.

Low-Cost Compared to Repairs

A Motor1.com survey looked at dozens of types of vehicle protection plans and determined that they usually range from $2,000-$4,000 a year, with monthly rates ranging from $80-$200.

That seems like a small price to pay considering that the average cost to replace a car’s transmission is nearly $5,400. A new fuel pump can go for $1,300 and electrical issues easily get into the $1,000-$2,000 range. In comparison, a vehicle protection plan can be priceless.

How Auto Lenders Protect Car Buyers’ Data

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Under the Financial Modernization Act of 1999, all financial institutions must take steps to safeguard consumers’ finances and personal data. It governs how institutions like auto lenders can collect, hold, and disclose customers’ information. But as the public becomes increasingly finance-savvy, lenders must further tighten their protective measures.

CARS Protection Plus reports that the rise of digital car buying and financing has left auto lenders with some unique security risks. The following details how and why the most successful lending institutions take cybersecurity more seriously than ever before.

Why Should Auto Lenders Protect Car Buyers’ Data?

Digital security and safeguarding should be at the forefront of every auto lender’s mind when considering any virtual change. All staff should be involved in the process and constantly reminded of the protocols (i.e., ensuring two-factor authentication is turned on, lockout times aren’t extended, and nobody writes passwords down for the world to see) for many reasons, including:

  • Pandemic boosted consumers’ financial fluency — The COVID-19 pandemic changed the way consumers behave and think financially. Since they’re more economically minded, auto lenders need to ensure strong cybersecurity to stay successful. 
  • Establishing and maintaining trust with new and current buyers — Customers aren’t afraid to go elsewhere if they feel their current lender isn’t up to scratch. So, institutions should look to strengthen their security belts to keep current borrowers and attract new ones.
  • Adhering to federal regulations — The Federal Trade Commission outlines various principles all financial institutions must follow. To avoid closing their doors permanently, lenders need to be mindful of the ever-changing economic laws. 
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How Auto Lenders Protect Car Buyers’ Data

Lending organizations are taking various steps to protect themselves and their buyers’ data from cyberattacks and breaches, such as:

#1 Ensuring Up-to-Date Software and Systems

Digital attacks often occur because systems or software aren’t completely updated. Hackers take advantage of the vulnerabilities to access networks and steal data. And sadly, once they’re in, it’s too late.

Many institutions are investing in patch management systems to mitigate these risks. 

#2 Tapping into Artificial Intelligence

While AI is one of the most at-risk tools, it’s also the best at preventing attacks and securing data. Companies don’t need humans to monitor firewall logs. Instead, AIs do it for them.

#3 Deleting Unnecessary Data

Auto lenders wipe old data (i.e., information over seven years old) from their systems. Major attacks occur when lots of data is sat around unprotected. So, deleting it is vital. 

#4 Strengthening System Access Control

Cybercriminals are known to enter business premises with a USB containing infected files, slotting it into the first computer they find, and damaging the entire system. Financial institutions combat this by installing perimeter security systems. 

#5 Implementing Endpoint Protection

Endpoint protection safeguards remote devices like tablets, laptops, and cellphones connected to a lender’s network. It reduces the risk of somebody attacking the wireless network and stealing data.

The Importance of Protecting Consumers’ Financial Privacy Isn’t Going Away

Cybersecurity is a global issue. It isn’t going away. In fact, it’s likely to get worse as the world shifts into an even more digitally inclined space. Therefore, auto lenders implement the five strategies above to remain on consumers’ recommendation lists. 

Cars and Safety: Where They Are Tested and What They’re Tested For

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Even with government-required airbags, live-saving seatbelts, and child safety seats, driving continues to be dangerous. 

CARS Protection Plus reports that according to the National Highway Traffic Safety Administration (NHTSA), there was a projected increase of over 18% in motor vehicle fatalities compared to the previous year.

Faster driving and reckless driving habits are mostly to blame, but there are still stringent protocols related to car safety to prevent an untold number of car accidents every year.

So, what exactly are cars tested for when it comes to safety? The good news: a lot. 

Safety Tests

The widest-known approach to car safety was established in 1970 by the NHTSA through the Highway Safety Act. The organization’s 5-Star Safety Ratings program is still very much a force in the auto industry.

It conducts side, rollover, and frontal crash tests on vehicles since they reflect the most common car accidents on America’s roads.

The tests use dummies that reflect different sizes and genders of drivers and passengers, as well as an array of speeds and crashes between different types, sizes, and numbers of vehicles.

Different types of barriers are included as well, and injuries to different parts of the body are evaluated.

There are other independent testing bodies as well. The Insurance Institute for Highway Safety (IIHS), for example, conducts numerous crash tests, including three different types of frontal tests, side crash tests, tests of roof strength, and tests on head restraints and seats.

There are even tests that evaluate headlights and stopping capabilities. 

Such tests are used on both new and used cars, but not every single vehicle model is tested by the NHSTA and IIHS. Usually, the testing bodies need to purchase the vehicles used for tests themselves, so they won’t typically buy expensive models, such as Porsches. 

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NHTSA vs. IIHS 

While both organizations conduct similar tests are both well-respected, there are differences. NHTSA has been testing cars since 1978 and recommends new safety technologies. It’s a federal agency that conducts up to 125 tests a year, usually on the most popular, high-volume car models.

The IIHS is a nonprofit that is backed by the insurance industry and tests about 100 new cars annually. While the NHTSA goes with a star rating, with 5 stars considered the best, the IIHS follows a rating scale that goes from poor and marginal to acceptable and good.

Its highest rating is Top Safety Pick+, which means a car received a “good” rating across its six tests. Like the NHTSA, the IIHS also tests the most frequently purchased cars or those manufactured in the highest volumes. 

How to Check a Safety Rating 

Curious about how your car’s safety ranks? The NHTSA maintains a database, and all you need to do is enter your vehicle’s make, year, and model. Find your vehicle’s listing and you will get a comprehensive review of how it performed in a variety of tests. 

The IIHS also has a safety database, and it is your next stop if your car doesn’t appear on the NHTSA database. You can search the IIHS database through the link on its homepage.

The results page is like the NHTSA’s, but you may find the results from not just crash tests, but the IIHS’ tests on headlights or safety equipment. By entering your car’s year, make, and model, you can also see if your car is a Top Safety Pick winner.

Automotive Trends to Look Out for in 2022

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Do you enjoy keeping up with the automotive trends happening around us?

While auto shows and car events may have been quiet this last year, we’re here to tell you the industry is back on track, bringing with it exciting new trends for 2022.

From purchasing vehicles online to bleeding-edge tech developments, here are 5 automotive trends to look out for in 2022 brought to you by Cars Protection Plus.

1. Online Purchases Are In

Purchasing vehicles online, also known as digital dealing, is quickly becoming a regular sales practice. Ten years ago we’d have thought this was crazy – after all, isn’t part of the sales experience negotiating the price of a vehicle with a nagging salesperson? Instead, this new model of buying cars has increased tremendously in the U.S. since 2020.

Let’s think about the benefits:

  • You can purchase a vehicle in seconds
  • You can compare inventory from your couch
  • No need to negotiate with a salesperson
  • Decreases likelihood of you overpaying for a car

With online purchasing options, the price is the price and there is much less chance of a salesperson nagging potential buyers. This seems to have had a surprisingly positive effect on sales figures and customer satisfaction.

This online purchasing preference could lead to some industry adjustments. For instance, sales personnel could end up converting to product specialists or consultants. Dealerships will likely expand their online platforms to garner more traffic and encourage sales. This trend seems to be one that will only continue to grow as society becomes more and more tech-oriented.

2. Luxury Vehicle Subscription Fees Will Decrease

The subscription-based model of luxury vehicles is expected to become more affordable, and thereby attract a younger demographic. Subscriptions are like vehicle leases, but their contract terms are more flexible and shorter. Clients thereby have the opportunity to drive high-end vehicles for less financial and time commitment.

Younger people seem to be interested in this trend, as they get to drive cars that offer them greater status and driving pleasure. They are also less focused on vehicle ownership than previous generations.

Other reasons this is an attractive option for younger people includes:

  • These car subscriptions typically include maintenance and repairs.
  • Anyone can apply for a luxury vehicle subscription online.
  • Car value depreciates the second you drive it out of the dealership. Younger generations don’t want the commitment buying a new car brings.

And finally, as trends seem to be leaning towards electric cars, people don’t want to be saddled with outdated models they won’t be able to sell in a few years. Which brings us to our next point…

3. Electric Vehicles Rise Above Competition

In 2020, there were more than 10 million electric cars on the road. Several manufacturers are phasing out gas vehicles, and plan to move over completely to electric vehicles between 2030 and 2040. So, from now onwards, you’re likely to see a lot more EVs on the roads and in your automotive news.

The only thing holding this trend back is the lack of widespread charging infrastructure. The state reportedly aims to address this by setting up a national network by 2030. If it all goes according to plan, charging stations will be more widespread in public spaces as well as at business premises and housing complexes.

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4. High-Tech is Hotter than Ever

Digital technology is now a major aspect of vehicle manufacturing. Luxury cars are extremely digitally complex nowadays and setting up their digital systems can require convoluted coding. Some vehicles notify owners when there are system upgrades available, just like your PC or phone do. Experts predict automotive Android and iOS systems are not too far away.From now on, each year is expected to bring significant and exciting automotive digital advances.

5. Healthy Living Features are on the Rise

As part of the expansion of high-tech automotive features, manufacturers are looking into creating vehicle features that feed the body, mind and soul. Yes, we are referring to well-being benefits for drivers while they’re on the road!

For instance, massaging car seats are trending. They have been around for a while and expected to be made more accessible due to their popularity. This nifty feature helps keep passengers comfortable and calm, especially on long drives. The massage function helps improve circulation, reduce stress, and helps elevate moods — useful for when stuck in traffic.

Another healthy living feature is cleaner air. Air pollution analysis and purification could be on the rise. This feature would assess the air quality outside the vehicle, and adjust it to be more pure and healthy within the vehicle.

The Takeaway

The automotive industry is going through a lot of changes right now. Most of these advancements are in response to the global move towards digital technology and online practices. It’s an interesting time to be alive and following these automotive trends!

The Most Expensive Car Repairs to Make

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Car problems are often costly and unexpected. Remembering when parts of your vehicle have been serviced or replaced will help you to keep up with maintenance that can prevent premature repairs.

But accidents happen, and aging wears down the most used systems in your vehicle. Of course, you can save yourself from spending your savings on these expensive repairs with warranties like those offered by Cars Protection Plus. However, you can also be prepared by knowing how much it costs to repair or replace important parts of your vehicle.

Below we cover the types of repairs vehicle owners should expect to make as their car ages and which are the most expensive or complicated to complete.

Cylinder Replacement

The engine cylinders are the most costly part of the engine to replace. Cars Protection Plus reports that a full replacement can run as high as $7,000 to $10,000 depending on the vehicle.

Installing a new engine may be the cheapest option in some scenarios and requires less labor. Replacing the cylinders requires the mechanic to remove the entire engine to replace the part, then put it back into the vehicle. So, the extensive labor to complete the job makes up the bulk of the replacement cost.

Engine Replacement

The cost of a full engine replacement depends on several factors, including:

  • The size and complexity of the engine
  • The hourly rate at the shop you take your vehicle to
  • Whether the engine you purchase is new, rebuilt or used

The price estimate for a new engine is between $4,000 to $7,000 based on complexity and brand. You will have to pay more for a performance engine installation in a luxury car or a vehicle with a diesel engine.

A vehicle’s engine life expectancy relies on many factors, including maintenance and how the parts are made. Poor maintenance or an accident can cause it to be replaced prematurely and lead to these expensive repairs sooner than you expected.

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Transmission Rebuild

A failed transmission will prevent you from driving your vehicle. The power from your engine will not be converted properly and create the energy the wheels need to move. Replacing an entire transmission system can range between $4,000 to $5,000.

The price of a transmission system rebuild or replacement is so expensive because the systems are complex. The price will go up for luxury vehicles or if the system needs to be rebuilt after a complete breakdown.

Regular servicing to flush the transmission fluid or replace it will prevent it from needing to be replaced early. How often the fluid should be replaced depends on the model and can be found in the owner’s manual.

Vehicle warranties may offer different protection plans depending on whether you have an automatic or manual transmission.

Suspension Repair

The suspension system of your vehicle contains many parts that absorb shock from the road as you drive. This shock absorption is a major factor in causing damage to your suspension.

The cost of repairs is determined by:

  • The make and model of your vehicle
  • The severity of the damage done to your vehicle
  • The brand of the parts used in the replacement

This puts costs anywhere between $1,000-$5,000.

Again, repairs to a luxury car will be more expensive, but an older car that is badly rusted underneath will require a longer labor period for a mechanic to access the necessary part of the vehicle.

Replacing a Head Gasket

The head gasket forms a seal in between the cylinder head and engine head. It prevents combustion gases, oil, and coolant inside the engine. This relatively small part is a crucial element in keeping your vehicle running and can cost between $1,200 to $2,000.

The labor costs associated with the part are the biggest contributor to the repair cost. Replacing a head gasket is a timely task and requires a different procedure for every vehicle. Your vehicle will still work with a blown head gasket but will lead to other systems in the engine failing if it is not repaired soon after symptoms are noticeable.

Your vehicle’s warranty may cover the cost of seals and gaskets under specific circumstances.

The Bottom Line

Vehicle part replacement and repairs are costly and can create a massive burden. But, unfortunately, there’s no way around it: as cars age, parts required to make your car function will deteriorate and become faulty, sometimes leading to expensive and complicated repairs.

However, having a car warranty can help offset some of these expensive car repairs. Carefully read the service agreement of your warranty contract to be ready in an emergency. Familiarize yourself with the maintenance required to keep your vehicle running smoothly to avoid premature repairs and replacements for as long as possible.

What Determines the Best Type of Auto Coverage for Your Needs

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CARS Protection Plus has been in the auto coverage industry for a few decades. They know all too well what is the best type of auto coverage that you need. One individual’s car insurance might look different from another is, and why this is, is because there are different factors that come into play that can make all the difference. One of these factors is where you live and whether you lease or finance your vehicle. There are different types of auto insurances and knowing what is required and what your financial situation is determines which policy is best for you.

A basic car insurance policy includes the following:

Liability coverage, which usually includes two types of coverage, bodily injury liability coverage and property damage liability coverage, both of which can protect you financially against other people’s claims in the event of an accident.

Uninsured/underinsured motorist coverage, this type of insurance protects you directly from other drivers. It pays you if you are injured in a hit-and-run accident or by a driver who either does not have liability insurance or does not have enough to cover your damages.

Personal injury protection is for states that have a no-fault law. It means any driver involved in an accident must file a claim with their own insurance company, no matter who caused the accident.

Medical payments coverage helps pay for the medical and funeral expenses for you or any passengers in your car. This insurance may also cover you if you are hit by a car as a pedestrian.

Collision coverage helps pay to repair or replace your car if it is damaged after colliding with another object, like a car or tree. This type of coverage is usually required if you lease or finance your car.

Comprehensive coverage helps pay for damage or loss that results from something other than a collision. This could be anything from theft, falling objects, earthquakes, vandalism, windstorms, and hail. It can also protect you against damage from animals like deer.

When considering how much coverage to buy, there are a few things to think about. One is your coverage limits, consider your financial situation. Weigh the premium you can afford each month against how much you could realistically pay out of pocket if you were in an accident. Second is your deductible, a higher deductible will lower your premium. After you research all this information then you will be able to figure out what insurance is best for you. Do not forget to compare quotes from many different insurance companies.

Cars Protection Plus Explains What Happens When Your Vehicle Has a Recall

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What is a recall?

When a vehicle or some of its equipment poses a safety risk to drivers and passengers, either the National Highway Traffic Safety Administration (NHTSA) or the vehicle’s manufacturer will issue a recall. Recalls can happen for any number of issues such as safety issues with a vehicle’s air bags, tires, steering, brakes, among many other possibilities.

Usually, the car’s manufacturer will voluntarily issue the recall when they discover a defect that doesn’t meet safety standards. The NHTSA will also issue one after the manufacturer files a report with them. The NHTSA says vehicle manufacturers must notify owners by mail within 60 days of the report being filed.

While recall service is usually free, other repairs you might agree to outside of the recall can be costly. Investing in a reliable and comprehensive service plan from Cars Protection Plus can help you cover any repairs not covered in a recall.

What if I haven’t been notified of a recall?

 If you suspect a recall and haven’t been notified, you can either call the vehicle manufacturer or check the NHTSA recall database. You can sign up to receive recall alerts via email from them.

Another way to ensure you’ll get notified in the event of a recall is to register both your new and used vehicles with their manufacturer and notify them if you move.

What do I do if I receive a recall notice?

First, read the recall notice. It should detail the safety issue with your vehicle and the equipment affected. It will also include:

  • A description of the issue or defect
  • Why it is being recalled
  • What the safety risk is

It will also tell you to have the issue repaired at an authorized local dealer. Usually, a dealer will be very helpful in scheduling repairs for the recall. If you have difficulty scheduling with the dealer, call the vehicle’s manufacturer and ask for help. If neither one is helpful, you can file a complaint with the NHTSA against them.

Don’t put off the recall repairs. The recall was issued due to a safety issue. The best thing is to get it repaired as soon as possible. If the manufacturer has said in the recall that driving the car isn’t safe, you should limit use of the car until the necessary repairs are made.

 What solutions will the vehicle manufacturer provide?

 According to the NHTSA, by law the manufacturer must correct the issue in one of three ways. They can repair the vehicle or part at no cost to you. If the problem cannot be fixed, they can provide you with an identical vehicle or a similar model. They could also issue you a refund for the purchase price of the car minus some depreciation costs, depending upon how long you have had the vehicle and how many miles it has on it.

Do I have to pay for the repairs?

Usually, you do not have to pay for the recall repairs. The manufacturer is typically responsible for fixing any recall issues for you at no charge.

If you bought a used car and there is a recall that the original owner did not repair, you can still get recall work done. A recall lasts eight years from the original sale date of the vehicle. Used vehicles more than 10 years old may NOT qualify for free repairs, though you can contact a local dealer and ask.

Gap Insurance vs Loan/Lease Payoff: Cars Protection Plus Discusses Whether You Need Either One

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You know about all different kinds of vehicle insurance, but what is gap insurance? Guaranteed asset protection (gap) insurance is usually for loans or leases on new cars that have never been titled before. Gap insurance is good to have if your car is stolen or totaled and you owe more on your loan than your vehicle’s depreciated value.

Gap insurance and loan/lease coverage can be purchased through various auto insurance companies, through some auto dealerships and through extended warranty policy providers such as Cars Protection Plus.

Is gap insurance really necessary?

Let’s say you purchase a new car for $30,000 and take out a car loan for $28,000. When driving off the parking lot of the dealership, you know your car just lost some value. According to the Insurance Information Institute (III), when you drive a brand-new vehicle off the lot, its value immediately decreases about 10% in the first month and up to 20% in the first year. It continues to decrease in value over time.

Continuing this example, a year after you’ve had the car, you total the car in an accident. Your auto lender has required both collision and comprehensive insurance on the vehicle, so your auto insurance company will pay the auto lender up to the car’s depreciated value. If your car is worth $24,000 at the time of the accident or theft, auto insurance will cover up to that amount. But you will still owe your auto lender $28,000, which means you will owe your auto lender the $4,000 difference between the depreciated value and the loan amount.

Will I still be liable to pay the full loan amount if my car is totaled?

Yes. You are still on the hook for the original loan amount, regardless of whether the car is totaled or stolen. This is where gap insurance comes in handy. With gap insurance, the gap insurer will pay the difference between what auto insurance covers and the original loan amount. Usually, you’ll need to have both collision and comprehensive coverage on a car in order to purchase gap insurance.

What is loan/lease payoff coverage?

Loan/lease payoff coverage is similar to gap insurance and some companies use the term interchangeably. If your car is stolen or totaled, loan/lease payoff coverage will pay up to 25% of your car’s actual cash value after your auto insurance company has paid you.

Gap insurance usually needs to be purchased within 30 days of the car’s purchase or lease while loan/lease payoff coverage can be purchased at any time you own or lease the vehicle. Loan/lease is also good for used cars, since true gap insurance is usually only offered early on in owning or leasing a new car.

Anytime you finance more than 30% of your car and think you may be upside down on the loan for any amount of time, you should consider either purchasing gap or loan/lease coverage. Both gap insurance and loan/lease coverage are relatively affordable as coverage providers don’t assume much risk and they are usually for a short duration.