The car he purchased was $18,900 on the car lot. His new loan ended up being close to $23,000. In the event he were to total his car out, he could end up owing $4000 or so after the insurance paid the bank. Not good! But, we added an endorsement called loan/lease gap coverage. Now if he totals out the car, the endorsement will pay for the difference. Much better than owing on a car you no longer own. And it was only about $5 per month and he can take it off when he's no longer "upside down".