Is Gap Insurance Mandatory for New Cars?

[OAbel]

It is not mandatory. Gap insurance is a type of auto insurance product that provides additional coverage. Simply put, when a vehicle is declared a total loss by the insurance company due to an accident, the compensation provided is based on the vehicle's current market value, which is inevitably lower than the original purchase price. This insurance covers the difference between these two amounts in such situations. Below is additional information: The four essential types of auto insurance are: 1. Compulsory Traffic Insurance, which is mandatory by law and required for road use. 2. Third-Party Liability Insurance, which covers bodily injury and property damage to third parties in traffic accidents. 3. Vehicle Damage Insurance, which compensates for the insured vehicle's own damages, as minor collisions are almost unavoidable when driving. 4. No-Deductible Insurance.