Insurance & Warranty

The average US driver pays about $2,300 a year for full coverage and most are overpaying by $300–$600. Here are the twelve ways to cut the bill, ranked by typical savings — and the two things you should never cut.

Does gap insurance cover negative equity rolled into a car loan? Often not, or only up to a cap. The math, the fine print, and gap waiver vs gap insurance.

Does gap insurance cover engine failure? Generally no. Gap pays only after a total loss or theft. Here’s what does cover a blown engine, and what to do.

Used cars depreciate slowly, so many buyers never need gap insurance at all. But a long loan, a small down payment or a fast-depreciating model can still leave you thousands underwater. Here is how to tell in two minutes.

Extended car warranties advertised at “$80–$150 a month” typically total $2,000–$4,500. Here is the real monthly cost by vehicle type and coverage level, how payment plans add 20–40%, and what the same money buys as a repair fund.

Extended car warranties cost $1,500–$4,000 and most owners never claim back what they pay. Here is the real math, the four situations where a warranty does make sense, and how to buy one for a third of the dealer’s price.

Gap insurance costs $20–$60 a year from your auto insurer or $400–$900 as a one-time dealer add-on. Here is what you actually pay, who needs it, and how to buy it for less.

Gap insurance only pays in a total loss or theft — and even then, late payments, rolled-in negative equity, deductibles and extended warranties are often excluded. Here are the nine situations where gap pays nothing or far less than you expect.