Why Are New Car Owners Most at Risk for This Insurance Nightmare?

Ralph Estep
00:00:00

Imagine this. You're cruising in your shiny new car, enjoying that new car smell, when suddenly you're involved in an accident.

Thankfully, you're okay, but your car is totaled. Your insurance company stacks in to cover the damages, but there's a catch.

Due to depreciation, your car's actual cash value is now significantly less than what you still owe on your loan. And this leaves you in a financial gap, potentially owing thousands of dollars out of your pocket.

Today, I'm going to share how to avoid this costly insurance mistake and give you some peace of mind.

Podcast Announcer
00:00:32

In a world where crushing debt keeps you trapped, where living paycheck to paycheck has become your new normal, and where the dream of retirement seems impossibly out of reach, there's hope.

Join financial evangelist Ralph Estep Jr. A man who's walked through the fire of financial failure and emerged stronger on the other side.

Welcome to Ask Ralph, the show where real world experience meets biblical truth. To break the bondage of financial despair.

Get ready to take control of your money, break free from the financial stress and align your resources with God's purpose for your life. This is Ask Ralph with Ralph Estep Jr.

Ralph Estep
00:01:12

Well, thank you for joining me today as we continue our journey together. I am so glad you take time to learn more about Christian finance.

Now, if you missed yesterday's show, we talked about whether your old filing status is stealing your tax refund. And I shared a heartbreaking story about one of my clients that lost her spouse spouse.

And this is such a common filing mistake and you'll love to hear the thrilling ending of it. So I'm going to encourage you to go check it out if you missed it.

As always, you can find all of our back issues askralph.com well, today's listener question comes to us from Jessica. And Jessica wrote this. She says, dear Ralph, I'm writing this through tears and honestly don't know where else to turn.

My husband and I just experienced what feels like a financial catastrophe. Three months ago, we finally bought that new SUV we needed for a growing family and for ministry work.

We lead the youth group at our church and transport kids to events. We felt God's blessing when we were approved for the $42,000 loan with just $3,000 down.

Last week, while taking teens home from a youth event, a drunk driver hit us. Thank God everyone is okay, but our SUV was totaled.

We thought we were protected since we had full insurance coverage, but yesterday we got devastating news. The insurance will only pay $32,000 because that's what they say the car is worth now? We still owe 39,000 on the loan, Ralph.

We're looking at a $7,000 debt for a car we can't even drive anymore. Our savings account has just $2,500 in it, which we were saving for the nursery.

Since I'm due for our first child in just six weeks, my husband has been picking up extra shifts at work. But with the baby coming, we are terrified. We've always tithed faithfully and tried to be good stewards of our money. How do we miss this?

What should we have done differently? Please help us understand how to protect ourselves in the future and what options we have now. I feel like I've failed as a steward of God's blessing.

Well, first of all, Jessica, thank you for your question and I am glad to hear that everyone is okay. I say amen to that. But I hear you've got this immediate financial crisis.

You've got that $7,000 gap and what you owe on the car and what the insurance is going to pay, and you're worried about cutting into your precious savings. And I'm so happy to hear it's such a blessing that you're going to be bringing a baby into the world. Your first you got.

I went through that several years back, you know, now My youngest is 23, and that is going to be in time in your life. It's going to be so exciting. But now you've got this difficult situation to deal with.

And I understand how it's impacting your youth ministry because you were using your SUV for doing travel. And I understand that spiritual and emotional burden you carry as you're preparing for your first job.

Well, the good news is today, Jessica, I've got some answers for you and a plan to help you move forward.

And if you've got a question just like Jessica, one of the things I'm going to encourage you to do is start your search by going to askralph.com that's our show website. When you go there, you'll see a little search icon. One of the best things you can do is click on that and just put your question there.

I've done close to 700 episodes now and I've got a ton of content out there.

And if you don't find an answer for what you're looking for, just drop me a line by going to just askralph.com and I'll put your question on the show. Well, Jessica, your question today took me to the Bible and it took me to the book of Ecclesiastes. I don't talk about that a lot on this show.

But here's a great verse from there. It's from chapter 11, verse 2 and it tells us this. Invest in seven ventures. Yes. In eight you do not know what disaster may come upon the land.

And Jessica, I thought about when you bought this SUV. Everything was positive. You had gotten that loan you talked about. You were so excited about this.

But this verse reminds us that we should always diversify our protection and prepare for those unexpected circumstances. Just like Solomon advised, you know, spreading investments to guard against disaster. We also have to be wise and protecting our financial decisions.

Which leads me right to our gratitude statement today. Because today I'm especially grateful for God's wisdom in scripture.

This is a beautiful piece of scripture because it guides us to make prudent financial decisions which protect not just our resources, but our families as well. I'm betting that's why you bought that big SUV. You got this baby on the way. You're transporting people in the youth ministry.

So let me start by talking about some statistics about just what you're talking about today, Jessica. And Jessica, I'm going to give you some action steps in a few minutes. But first let me share these eye opening statistics.

And this is going to demonstrate while gap insurance and you mentioned that $7,000 gap and that's exactly what we're talking about today. It's going to demonstrate why gap insurance is crucial in today's financial landscape. And I'm going to start with this one.

And it seems very negative, but 64% of Americans are living paycheck to paycheck. That is a sad situation. My grandfather say living hand to mouth. But 64% of the population's there.

So think about their vulnerability if there's a financial disaster. Like you said, you're in this financial disaster situation because your car has been totaled.

You had this negative equity situation, not that you caused, but it's just the fact the insurance company saying to you, hey, we're only going to give you X number of dollars for that car because that's what we say it's worth. And 64% of people don't have the ability to tap into a savings account or to figure out a way to solve that.

And here's something else you need to understand. The average new car loan has increased to over $40,000. That's the average.

And at the same time, because of the prices going up so high, many buyers are putting less than 10% down which creates this immediate equity gap. The moment they drop off the lot. I remember my dad used to say this all the time.

He said, son, when you go to buy that car, as soon as you leave the lot, that car just dropped in value.

I've heard statistics like, and that's what I'm gonna talk about next is this rapid depreciation these new vehicles typically lose, and ready for this one, 20 to 30% of their value in the first year.

I would even make the argument in the first couple months, which creates this immediate gap between that loan value and that insurance payout potential. Because you were in the finance manager's office, you signed this paperwork, they gave you a loan for the full purchase cost.

And maybe you put, like you did, you said you put $3,000 down. But if that vehicle is going to lose 20 or 30% in the first few months, think about that.

It's simple math says if you've got a $40,000 car and it loses 30% in the first six months, that's a $12,000 hit. So that $40,000 car that you drove off the lot is now worth 28,000. And that's what insurance companies are going to pay.

And without an emergency fund, this was a sobering statistic. 78% of people resort to credit cards or other high interest loans to cover these unexpected expenses.

This is that very same situation you find yourself in, Jessica. You're dealing with this situation where you, you've got this negative balance.

The bank is probably getting to you, calling you, asking you what you're going to do to resolve this problem. I mean, I guess you could just continue to make payments. That's probably one of the things, you know, they promoted.

But you're going to have to go find another vehicle. And how are you going to continue to make payments on two vehicles? And that's why this gap insurance we're going to talk about today is so vital.

Because studies show that having proper insurance coverages, including this gap insurance, is one of the key components of a solid financial plan. Now that goes alongside of that. So that's that important component, is having that insurance. But you also need to have those emergency savings funds.

And here's the last statistic I'm going to share today.

Only 43% of car buyers are offered gap insurance at the time of purchase, which amazes me because I can tell you every single time, and I was talking to a person yesterday, I'm one of these guys that buys and sells a lot of cars, and I can tell you I can't think of a single Instance when I was in that finance manager's office where they didn't tell me, hey, you know, for, for five extra dollars a month, we can add gap insurance to your plan.

So I don't know that I agree with this statistic, but this is what I found when I did some research, 43% of car buyers aren't even offered this, which. Okay, fine, but I think the bigger issue, and that's exactly why I'm doing this show today.

I was in a meeting last Friday and we were talking about somebody had an accident and their car got totaled. And my good friend Craigie says, ralph, I bet you've done a show about gap insurance. And I said, let me go back and look.

I went to asgraph.com I looked at the search and I said, you know what, Craig? I actually have it.

So that's why I'm talking about this today, because a lot of people just don't understand the importance of this gap insurance until it's too late. And Jessica, unfortunately, you found yourself in that same situation, and I am going to give you some tips to recover from that.

But these statistics illustrate why gap insurance shouldn't be considered just an optional add on. I truly believe this to my core.

It's a crucial part of protecting your financial future and avoiding devastating impacts of unexpected vehicle losses. And I'm going to talk specifically about that in a few minutes. And see, I'm going to tell you the truth.

Having been one of these people that likes to buy new vehicles all the time, I personally always carry gap insurance on my vehicles because, like I said, I like to flip cars. Probably too much. My wife is saying to me, Ralph, are you ever going to keep something for more than a year? Yeah, you know, I probably should do that.

You know, it's one of those things where I do this show about making good financial decisions.

That's probably one area that I could do a better job, but it leads to equity issues, if you think about it, because I'm not putting a lot of money down on that car. Now, here's the thing.

I'm going to tell you a little spoiler alert right now, even if you're offered that gap insurance, I'm going to tell you right now, that is a negotiable thing. In the finance manager's office, you might be saying, ralph, how's that possible?

Let me just tell you, I've been through this myself many, many times when I'm negotiating with the finance manager, you've already got your price of your car figured out. You know, what you're paying, you've already decided on interest rates. And then they start talking to you about credit, life insurance.

I've done shows about that. I'm encourage you to check those out. But then he got.

Then they usually get to that point of that Gap insurance, and they'll say, oh, you know, since you're not putting a lot of money down, and I'm not one that puts a lot of money down, to be very honest with you. They'll say to me, oh, you know, you really should consider buying this Gap Insurance policy. And I'll say, okay, that's fine.

And I remember the last time I just bought a new vehicle and, and I was in the finance manager's office, and he knows me, so he knows, he doesn't, you know, try to sell me a lot of nonsense. He knows I'm gonna going to pin down and cut him right to the chase. But we always do usually talk about Gap.

So we got to that point in the conversation and he says, ralph, he says, okay, I've got this Gap insurance. It'll cover the difference in equity. If something were to happen, the car would be totaled.

And he said, it's, you know, I'm just going to throw number $900. And I said to him, okay, what's my price? And he kind of looked at me like, Ralph, what are you talking about? He said, you know, this is the price.

I said, no, you got some negotiation room in that. I used to sell these policies when I was a credit union executive, so I know there's some room in that. I said, so, what's my real price?

And he says, well, you know, I could probably do it for 800. I said, well, we're making progress. What's my real price? Well, you know what? I'm not supposed to do this, but I could give it to you for 700.

I said, all right, we're almost there. I said, I really think this gap is a good idea. So you know what, Ralph? I'll tell you what I'll do.

I'll give it to you for just $100 over what it cost us. And Ralph, to be honest with you, it's costing us $500. So I will give it to you for $600. And I extended my hand across the desk.

I said, we've got a deal. And think about what I just did. A $900 gap policy. That's what everybody off the street is paying for that. And I got it down to 600 bucks.

I just saved myself 300 bucks. And I've given myself peace of mind.

So let me explain what gap insurance is in a way that will help you understand why it's such a crucial part of a financial protection plan. So gap insurance, this is what it stands for, stands for guaranteed asset protection.

And it's basically an insurance policy that gives you additional coverage that protects you from differences between what your regular auto insurance pays. We talked about that. You know, what your situation, Jessica, and what you actually owe on your vehicle when it's totaled. And think about it.

As I said a few moments ago, since most vehicles are losing 20 to 30% of their value in the first year, this is so very relevant and important. Well, let's talk about what gap insurance covers. And if you think about it, it's not rocket science.

Gap insurance covers that gap between your car's actual cash value and your loan balance.

Basically, it's a protection against being underwater on your car loan, just like you have, Jessica, you said you owed, I don't remember exactly the number, but let's say 42,000, and the bank's only going to give you, you know, 35,000. So there's a $7,000 gap. So it gives you that protection against being underwater on your car loan.

And the financial security during an unexpected vehicle loss. Nobody expects to go out there and get in an accident. I am very sure, Jessica, you weren't expecting to go out there and get hit by a dunk drive.

And like I said, thank God you're okay. But this policy, this insurance will give you that financial security during those unexpected vehicle losses. And bigger than that.

And, Jessica, this is what you're really asking for. It's going to give you peace of mind because you're going to know you won't face a large debt if your car is totaled.

Now, the most logical question you might be asking, that's great. How do I get it? And I've already talked about this. One way you can get it is through your car dealership at the time of the purchase.

Like I said, negotiate that rate. Trust me. Trust Ralph.

When you're going in, if you're going to go buy a new car or even a used car, you can buy this on used cars, too, depending upon the age of the car. Just think, oh, Ralph said I can negotiate that rate. And maybe you won't be able to negotiate quite as effectively as I.

But like I said, I buy a lot of cars. So this guy kind of owed me a favor. But you can definitely negotiate this to some extent. Now, that's one way to do it.

Another way you can do it is through your auto insurance provider. A lot of auto insurance providers actually cover this as well.

Now, be careful with that one, because I have actually seen where they can just add it and add it and add it, and it's not really a good price. Sometimes it's better to just pay for that up front. There's an. There's independent insurance companies that offer this.

And actually, I talked about this a few minutes ago, Credit unions offer it. So let me tell you this story, because this one will blow your mind. And this is probably.

I've been out of the credit union industry for a while, but I'll never forget this. Had this young man come in. He was 21 years old, and he was buying his first car.

And I remember my loan officer came over to me and she says, oh, you got to see this car, Ralph. So I said, oh, you know what? I'll take a break. And the.

The credit union member, like I said, 21 years old, first car, we went outside and it's parked in the parking lot. And let me just tell you, this car was beautiful. It was this flaming red Mustang GT. I'm talking about a sweet car.

And this guy, this chop, just a child. I call him a child. I'm 52 years old. Everybody's a child to me. But he had saved for three years working two jobs, and he watched it every day.

And to be honest with you, I could tell when he was here in the parking lot, I'd be sitting in my office, and my office was in the front of the credit union building. And a lot of times people would back in, and I had these blinds, like a lot of people. And the sun would reflect.

Well, when this dude got there, let me just tell you, right? The sun would reflect on my eyes. I say, oh, such and such is here. Anyway, bottom line, he loved that car. He took care of this car.

It was everything to him. And then something bad happened. It was a disaster. He was driving to work one morning and someone pulled out in front of him.

Now, he was able to slam on his brakes and he avoided the person pulling out, but wham, somebody rear ended him all of a sudden. No cause of his own. He was just doing right thing. He. He wasn't distracted. His beautiful car was totaled. And here's the problem.

He had just paid a little, if I remember correctly, a little under $45,000 for the car. And he had insurance. One of the things we made sure of when we did a car Loan for somebody. They had to show us proof of insurance.

So he owed $45,000 on this car. And here's the problem. He called me and he said, Ralph, he said, the insurance is only going to give me $37,000. I say, yep, that's the Gap problem.

But his loan balance at this point he had paid down a little bit. It was 43,000. So he had this $8,000 potential gap. And he called me, he was in a panic. And I said to him, we'll call him Joe.

I said, joe, I said, I've got some great news for you. And he says, ralph, listen, I am so devastated losing this car, man. I worked for two years to save up for this. This is my baby.

He called it and he says, now all of a sudden I'm going to owe you guys $8,000 and this car is totaled.

And I said, no, no, no, my friend, I got some great news because when you had come to us and you did that loan, you probably didn't even realize it at the time. I knew we mentioned it, but you added that Gap policy. He goes, Ralph, I remember something about that. I said, and remember it was about 400 bucks.

I think it was $400. And I said, so guess what, Joe? I said at the time of purchase, my loan officer said to you, hey, you really should consider this Gap policy.

And he honestly didn't remember. But we added it cost him $400 and that gap saved the day for him. So that $8,000 potential gap, that financial disaster, it was completely resolved.

We filed a claim with the insurance, the Gap Insurance Company, and for 400 bucks his financial disaster was mitigated. Now he's still upset. He had to go buy a new car. And I don't remember exactly what he ended up doing.

So you might be asking, Ralph, what does Gap insurance coverage? What does it cost? What's the average cost? I said, in this particular case, it was $400.

Now typically they range from 300 to 800 and again, it depends on the value of the car. If you think about it, it's a simple math equation. As the car value gets higher, the insurance is going to cost more.

And usually, like I said, when I've bought, it's a one time fee when purchased through the dealership. Or like I said, you could also do it with your insurance company. Maybe 20 or 40 Dollars a year. Again, look at the fine print of that.

But here's the thing I'm going to say to you, when you're considering the cost you may saying, Ralph, look at, that's just $500. It's $600. I don't have them. I'm scrimping and saving to buy this car. Just remember this.

You remember Ralph said this, 78% of people must resort to credit cards or high interest loans to cover unexpected expenses. So put yourself in that situation. The unforeseen happens. Your car is totaled. Do you have $8,000 to make up the difference?

Are you going to be able to make two car payments till you get that thing paid off?

So really, my friends, if you're listening to this right now, Jessica and I know you didn't do this, or at least you didn't mention it in your letter, make this investment in yourself because here's why it's important. It's part of a comprehensive financial protection strategy. As the Bible verse said, invest in seven or in eight.

Because what it's really saying is diversify your protection strategy.

And again, I'm not saying that's the end all and be all, but it should be something that you add in addition to your emergency fund and other insurance coverages. Because think about it like this. For our health, you need health insurance. For medical costs, for your life.

A lot of people will recommend, I recommend it, you need life insurance for family protection. Make sure your loved ones are protected. And at the same time, these gap insurance policies protect against a specific but significant financial risk.

So you might say, Ralph, how do I evaluate if gap insurance is right for me? And here's some things I'm going to tell you, you should consider, number one is the size of your down payment.

Now listen, if you're putting half of the value down for the car, there's no reason to buy a gap insurance policy because you're putting half down. And even though you might lose out, you're going to lose your own money, but the bank's not going to come after you.

So it looks at, you know, you have to look at the size of your down payment. You also have to look at the length of your loan. If you're taking a 72 or an 84. I even saw the other day that people are doing 10 year auto loans.

Well, if you think about that, the way compound interest works, at the front end of that, you're going to be paying very little in principle. So your negative equity position is going to grow as your length of your loan term extends. So if you do like a two year loan, it's less of an issue.

You've also got to look and see in the market, what does your vehicle typically depreciate? Look around, see, does it depreciate quickly? Does it depreciate slowly? Some of that is just doing some online searches.

And then the last but not least thing, if you're one of these people that's got a huge emergency fund, then I say, hey, maybe gap is not that necessary for you. Again, you got to weigh the pros and the cons.

But if your current emergency fund status has a big goose egg or a zero in it, this is the policy that's right for you. But again, you've got to evaluate this based on your specific circumstances, because everyone's situation is different.

You got to look at your income and your expenses and overall financial situation. Now, I'm going to share with you a few creative alternatives. And this is based on my experience helping Christians with their finances.

So here's some ideas. Again, I want to be clear. These alternatives come with their own risks and their own considerations. So you might say, Ralph, what can I do?

Well, here's one thing you can definitely do. Make a larger down payment.

If you make that down payment of 20% or more, that helps prevent that being underwater on your loan from the start, again, that money is gone. But when you drive off the lot, if you put 20% down or you put 30% down, then you really don't have that negative equity position.

Another thing you can do is build that emergency fund.

Focus on that, put a laser beam on that, build a robust emergency fund that covers the potential gap between that insurance payout and the loan balance. If you're one of these folks that has that cushion, you have that insurance, then that's great.

But just be prepared, like Joe learned to credit you and have that $8,000 sitting there so that you can fix that loan if the unforeseen happens and you lose that vehicle. And again, this is no fault of your own, but you can protect yourself through these insurance combinations.

You know, you can look at different types of insurance strategically. For example, having comprehensive auto insurance along with disability insurance can provide overlapping protection. So that's a good thing to do.

And then again, you could set aside money that you'd pay for that gap insurance in a dedicated savings account that creates that cushion. Now, one final thing you can do, we talked about the length of that loan term. So this is a double benefit.

You consider making additional principal payments early in the loan because that will reduce that gap between what you owe and, and the value of that vehicle more quickly. So, for example, let's say you got that five year loan. We'll use Joe as an example. You got that five year loan for $45,000.

Well, if he was aggressive in paying down on them, maybe making an extra couple hundred dollars a month in principal, well, that loan balance is going to quickly decrease so that depreciation and that loan balance will at some point catch up. But again, I want to emphasize this.

These are alternatives, but they're not going to provide that same level of protection as that $400 gap insurance. So having appropriate insurance coverage, it's essential for protecting against financial loss.

And like I said, if you listen to the show, you know, I talk about this all the time. Every person's situation is unique. And these alternatives, you can consider them, but you got to look at your particular situation.

Now, getting back to you, Jessica, with your immediate situation, I didn't forget about you. First thing I want to say to you, I am absolutely grateful that everyone walked away from the accident. That's the most important thing.

Now you might be saying, Ralph, yeah, that's great, Ralph. But now where am I going to come up with that $7,000?

And one of the great things about your letter is you talked about the spiritual concern of being a good steward. So let's talk about it a little more in depth. So what you've said to me is, you've got this negative equity situation. You're upside down on the loan.

You're telling me you owe 39,000. See, I remember now. There was a numbers. You owe 39,000, your insurance company is going to pay 32. So you got this $7,000 gap.

And again, you got to understand how you got there. That's because of that rapid vehicle depreciation, that 20 to 30% loss. And if you only put $3,000 down, that was only 7%.

So if you think about it, if that value drops between 20 and 30%, you only put 7% down. You got a big issue to make up for. So here's the first thing I'm gonna tell you to do.

Jessica, here's the thing, just like Joe, make sure you didn't buy that gap insurance. You may have not even realized it. Look at the loan paperwork and make sure that it wasn't added.

A lot of times in that negotiation strategy, you might not even realize they're adding a lot of my customers. A lot of my clients didn't even realize it was included because that could really solve. It could save the day for you.

Another thing you're going to do is you can argue and you can challenge your insurance company's valuation. Might say to them, hey, I don't think that's a fair number. How do you do that? You get comparables. You document the vehicle condition.

Maybe your vehicle had lower mileage than the average. Maybe it had some add ons that were made it more valuable. So challenge that insurance valuation.

Another thing, because you mentioned that you were doing this for the church, you might talk to the folks at the church and see if their insurance could potentially help out in the situation. Maybe because you were carting people around for a church activity, the church insurance could very well cover that.

Again, I'm not an insurance expert and I don't know the details of what's going on in your church, but at least reach out to them. Maybe the congregation would be interested in helping you out. And the last thing I'm going to encourage you to do, you've got this $7,000 debt.

One of the things I don't want to see you do, I don't want to see you take that $2,500 that you set aside for the baby coming. And that's really your emergency fund from what I can tell. Don't spend it all there.

Reach out to a credit union, because here's the deal, that's going to be a much better idea than putting this on a credit card or something like that. The other thing you can do is reach out to the lender.

When I was at the credit union, I held these situations where, you know, members didn't buy that insurance coverage and I work something out with them, it didn't have to be that full amount of that payment. So that's what I'm going to encourage you to do. And think on Proverbs 24:16. And Jessica, this is my key takeaway for you. And this is what it says.

It says, though the righteous fall seven times, they rise again. So you're doing the right things. And you know, I love the fact you mentioned you're tithing faithfully.

And see, this is not a spiritual failure for you. It's not some spiritual decision you made. This is a great opportunity to learn though. And in the future, here's my other takeaways for you, Jessica.

If you don't find that you have that gap insurance when you go to buy a new vehicle, do me a favor and buy that. And if you can't do that, put more than 20% down.

You know, maybe you want to consider a used vehicle because generally, and I'm not going to go on a tangent today, but Generally, used vehicles will actually not have that significant depreciation like others do. And if you're not listening to me, build that emergency fund. So that's my key takeaways for today.

And and again, Jessica, I think it's wonderful that you've got a baby coming. I wish you all the best and know that there is hope and you are being faithful. So remember, your value is so much larger than just your finances.

And Jessica, that's my key takeaway. As you know, whenever I record a show, I also write a blog post.

So just like today's show, you can go to askralphpodcast.com, and you can read all about today's show. I put some resources in there and I go a little deeper in that. So I'm going to encourage you to go check that out. That's at askralphpodcast.com/blog.

You know, if today's discussion about Gap insurance and its alternative struck a chord with you, chances are you probably know someone else who needs to hear this message.

Maybe somebody you know in your circle might be facing the exact same situation right now or could be about to make a vehicle purchase without understanding these crucial financial protections.

So here I'm going to give you five simple ways that you can share this vital information and potentially help someone avoid a major financial setback. Basically asking you to do is share the show. So one of the ways you can do that is share during your small group.

When you're meeting with your church small group or your Bible study, take a moment and mention askralph.com and you can talk specifically about how today's episode opened your eyes about Gap Insurance. And think about it. This is what you can share. It's so powerful.

Since we're called to be good stewards and help others in our faith community, there's another thing I encourage you to do. Text a friend. Send a quick text to someone you know who's planning to buy a car.

Maybe you know somebody's in the market and just say, hey, I just learned something really important about protecting your car. Purchase on the Ask Ralph show and just tell them, check out askralph.com it could save you thousand dollars. Save you thousands of dollars.

Maybe you want to share my show during your Sunday fellowship. Maybe you're having a coffee after service and someone mentions they're planning to buy a vehicle.

Tell them about today's episode and how to protect their financial future. Because listen to this. Our faith community grows stronger when we share valuable resources with each other.

And last but not least, maybe put a quick note on social media about what you learned today. Point them to askralph.com because you never know who in your network might be silently struggling with the same issue. Because remember this.

And Jessica, I'm pointing right at you. I'm talking right to you. Good stewardship includes helping others avoid financial pitfalls. And that's really the key.

Because remember, sharing this information isn't just about spreading financial knowledge. We can all do that. There's plenty of places online that you can do that. But you're listening to this show.

You know, we do things a little differently here. It's not just about this financial knowledge. It's about helping others achieve both financial success and peace of mind while growing in their faith.

So share askralph.com because you're potentially helping someone avoid a significant financial burden while still pointing them towards faith based financial advice. So I'm going to encourage you to do that and I thank you ahead of time.

You know, as we wrap up today's show about gap insurance alternatives, I want you to take a moment and reflect on three questions that I really feel will help you examine both your financial choices and your faith log. That's what I call my reflection questions. Number one question, and this one is going to cut. But it's the true question.

It's a one that's very valuable.

If your car was total tomorrow and you discovered you owed $7,000 more than the insurance would pay, how would this impact your ability to serve in ministry and live out your calling? How would it affect your bills? How would it affect your family? Ask yourself that difficult question. Just like Jessica's in this situation right now.

How would that affect you today? So that's my first reflection. Question number two.

Looking at your current financial stewardship practices, are you making decisions based on faith and wisdom or are you letting the world's patterns of immediate gratification guide your choices? And I know that's a question that's tough. I gotta ask myself the same question. I told you I like to flip cars.

Am I really being a good steward by doing that? And think about how your money management aligns with your Christian values. We all need to evaluate that.

And number three, it's about the sharing of the show. Who in your circle of influence might be about to make a major vehicle purchase?

And how could sharing today's message potentially protect them from a financial setback that could hinder their ministry work? Remember, we're called to be good stewards, not just of our own resources, but to help guide others in our faith community as well.

So take some time today journal about these questions and if you like to squash your answers or need assistance in implementing what we covered today, remember, you can always reach out to me at justaskralph.com because here's the deal folks. Your financial, peace and ministry effectiveness, they matter to me. This is why I'm here. This is why I do what I do.

And I'm here to help you navigate both of these successfully. Now, tomorrow we're going to dive into an important topic about digital identity and privacy.

I call this episode Is ID Me the Future of Digital Identity or a Privacy Nightmare?

I got a email from a client after I had talked about setting up this account with the IRS, and she said, ralph, she says, I went onto the IRS website and they want me to do this. ID Me. And she said, I'm really worried about it. So that's a show tomorrow you don't want to miss. And remember this.

My passion is to help you achieve financial success.

I want to see you live out your dreams and I want to see you grow in your faith because I know together we can master your finances from a Christian perspective. So as I always end this show, stay financially savvy out there, and may God bless you abundantly.

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