does skipping payments on an auto loan affect GAP insurance coverage on the vehicle?

One Response to does skipping payments on an auto loan affect GAP insurance coverage on the vehicle?

1. MSAD says:

   October 17, 2009 at 10:40 pm

   Yes.

   Gap coverage will not pay for any penalties/fees/additional interest you incur as a result of not making a payment or making a payment late.

   Also — a missed payment can drop your credit score as much as 70-100 points. Your credit score goes down….the cost of insurance, interest on credit cards/loans goes up.

   That one missed payment is way more expensive than just the payment.