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The age of a vehicle significantly influences how much gap insurance covers because newer cars depreciate faster than older ones this means younger vehicles typically have lower actual cash values (ACVs) relative outstanding loan balances at time totaling occurs resulting larger potential payouts from GAP Insurance Policies while older cars already experienced substantial depreciation may already have ACVs close to what left pay off loans meaning less need extra protection some insurers even offer reduced premiums discounts older models reflecting lower risk associated them since likelihood totaling event occurring decreases over time maintaining well-documented maintenance records enhances resale value supports higher ACV assessments indirectly increasing potential GAP Insurance payouts when necessary situations arise
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