I'll be talking about the gap insurance gap is short for guaranteed auto protection gap insurance is sold by car dealers on a new or a used car purchase in this article I'll be talking about when it's a good idea to buy gap insurance and when it's not and how much you should. basically, be paying for and also I'll add in a little part in the end here about how you can maybe save money by cancelling your gap at a certain time and getting some of your money back. so in order to illustrate how gap insurance works I do this graph here and on this side will be the price of the car and down here is the loan years not this case it's the five-year loan which is standard in the industry a 60-month loan. so when you buy your car you're going to have the value of the car which is going to start let's say I'm just going to draw an arbitrary line right there and that may be 15 20 25 30 thousand dollars. it really doesn't matter and you're
Car insurance is one of those pesky expenses that we just won't ever get rid of. If you're looking at car insurance for your teen or you're a teen yourself, then you might quickly realize that car insurance can get really expensive. We're going to take a look at why car insurance is so expensive for teens and how to keep costs low. (light music) Hey guys, welcome back to the College of Investor Investing and Personal Finance For Millennials. So, I never thought that I would be passionate about car insurance until I started paying into it and realizing just how expensive these rates can be. This is especially true for teens. Now according to the CDC, teens ages 15 to 19 make up 6.5% of the US population and they make up 8% of motor vehicle accidents. It's true that teens are new drivers. Insurance Premium time decay You're inexperienced, you just started driving so car insurance companies are going to view that as more risky because y