Gap insurance is one type of supplemental auto insurance that may be very beneficial to purchase. If a car owner runs into a situation where their car is stolen or totaled, but they still need to pay off the loan balance, having gap insurance can really help. A vehicle is worth a certain value, and gap insurance will pay off the difference in value of the car and what you still owe. Gap insurance is better this way than even what having comprehensive and collision can do.
Gap insurance is usually available for newer vehicles, so it may be hard to find a provider who will offer this type of supplemental auto insurance for an older vehicle. You could still purchase it; however, the price would just be higher. Your current insurance company may already have gap insurance built into their premiums. It is also possible to buy gap insurance from a dealership, but this will typically be much more expensive. It is better to try and get this coverage from your car insurance company to save money. Having gap insurance is a great idea for anyone who owns a vehicle, but especially for those that have a bank-owned vehicle.