Should you trust the auto finance people at the dealership? Definitely not. If you see "Gap Insurance" listed on your itemized car paperwork, then ask the finance person what it is? If they tell you "your loan requires this" versus actually telling you what "gap insurance" is . . . I would walk away without signing the deal until you speak with an attorney who can review your paperwork. You need someone who has your best interest. The dealership is just trying to sell the car by all means necessary.
GAP Insurance is attached to a loan when the likelihood is high that you will eventually owe more than what the car is worth. The car may be the type that will depreciate quickly. Or your interest rate may be so high that you will not be able to touch the principal owed until years down the road. Or you just may be paying too much for the car up front.
Regardless, GAP Insurance is designed to safeguard the finance company in case the car is totalled and there's a huge "gap" between what the car is worth and what you owe.
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