Do I Need Gap Insurance

What Is GAP Insurance? Protect Your Wealth from the Car Depreciation Trap | Jaxon Forge Explains Cars lose value FAST — often 20%+ the second you drive off the lot. If you're financing with a small down payment or long loan term, one wreck or theft can leave you owing thousands on a vehicle you no longer have. That's where GAP insurance (Guaranteed Asset Protection) steps in. In this no-BS breakdown, Jaxon Forge — founder of MoneyForged.com — explains: - What GAP insurance actually covers (the "gap" between your loan balance and the car's actual cash value after total loss) - How it works when your car is totaled or stolen - Who really needs it (new/low-down financed cars, leases) vs. who can skip it and save money - Why dealers push it hard (and why shopping through your insurer is usually cheaper) - The wealth lesson: Protect the downside so you can attack the upside without stupid financial holes Most people stay broke because they ignore hidden risks that turn small mistakes into big setbacks. GAP is cheap insurance against one of those risks — but only if you're actually exposed. Know your numbers, cover real threats, eliminate unnecessary expenses.