Many people find themselves wishing that they had GAP insurance in the early years of their car’s life. Car GAP insurance is if something happens to your car the insurance will pay the different between the balance owed on the car and the cash value of the car. This type of insurance will protect your lease or loan on your car. In some cases GAP insurance will also pay your regular insurance as well. Many vehicle owners will want to find GAP insurance coverage. Some people may assume that this coverage is automatic but it is not. As soon as you drive your car away, you are at risk if you do not have GAP insurance coverage. Not having GAP insurance can make you lose money and end up in financial debt and can lead to you having bad credit if you are not able to pay off the vehicle loan.
Sometimes we find ourselves with a car that has been damaged by a hurricane, severe storm, hail damage, tornado, fire, flood, theft, vandalism, or negligence of another driver. Your regular insurance company is only going to pay the cash value of the car. Since your car depreciates as soon as it leaves the lot, you could end up with a lot less than what you might think. In fact you may wind up with less money than what you still owe on the loan or lease from the car. This is the gap that you could be left owing if your car is totaled. The gap can range in price and can be very hard to come up with. How long it takes you could lead you to get a bad credit score or be hassled by bill collectors every day over the gap in price that you owe.
If you purchase GAP insurance and your car suffers from being totaled the company that you got your GAP insurance from would then issue you a GAP insurance refund. Your refund would help you to pay off what you owe and make sure that you are not stuck in a bind like you would be if you did not have GAP insurance. Having a policy will help to make sure that you have refund GAP insurance that will pay you for the part of the car that was not covered. Your GAP insurance refund will be processed quickly and you will be able to pay off your loan amount and look for a car as quickly as possible.
Now that you know that you will need to have GAP insurance you may be curious as to where you would be able to purchase GAP insurance. There are many companies as well as car dealerships that will offer GAP insurance. You can talk to your local dealer or look online for GAP insurance. If your car dealership offers GAP insurance be sure to talk with them about getting it so that you are well protected. You can also search online for Gap Insurance or go to Car Gap Insurance website so that you can find valuable information on the world of Gap insurance. Getting Gap insurance should be a necessity for everyone purchasing a new car.