If you’ve ever financed a new car, you know that you are required to purchase insurance to cover the cost of the car in the unfortunate event that it gets totaled. But did you know that even full coverage auto insurance does not guarantee that you will be in the clear? You could drive your new car for a few weeks, and then, bam! you are in an accident, and your new car is toast. What then? You would probably call your car insurance company expecting them to pay off your loan balance. You might be anticipating another trip to the car lot to pick out another new car to replace the one you lost. But instead, you might be in for a big surprise-and not the kind of surprise you were expecting. What you need, in addition to your car insurance, in such a event, is car GAP insurance.
Car GAP insurance will cover the “gap” between what your auto insurance does not pay and what you still owe on your car loan. Remember, when you drive a new car off the lot, its value depreciates rapidly. But you will still owe for the value of a new car. Therefore, GAP insurance can protect your investment in the event of an accident, and this is even more important if you are leasing a car. The last thing you want is to end up with a big payoff amount and no vehicle to show for it. Consider protecting yourself ahead of time. It is not that expensive when you think about the alternative.
The cost of car GAP insurance is not much more than you will be paying for auto insurance anyway. Yet it could save you thousands. You will have to pay a percentage of your total premium or a percentage of the car’s sticker price to buy the added coverage. But it should be well under a hundred dollars on an average car, sometimes in the range of $30 and maybe even lower. Don’t wait until you need this added coverage to educate yourself on its importance. For a reasonable fee, you can ensure that your new car is protected. It’s a small price to pay for peace of mind.
If you decide that car GAP insurance is for you, shop around and choose the rate you are most comfortable with, whether that be through your own auto insurance company, the dealership, or some other outfit. Ask them to explain their policy regarding refund car GAP insurance, as well. Should you ever need a refund for your GAP insurance, say, if you wrecked your car before your current insurance term ended, you may be eligible for a refund on the portion not yet absorbed. Another thing to keep in mind is that the insurance commissioner for your state is there to help you if there is ever a dispute between you and your insurance company; however, you have to protect yourself first buy purchasing the appropriate insurance and then by making the insurance payments in a timely manner.
The benefits of purchasing car GAP insurance outweigh the reasonable cost and will offer you peace of mind when you drive your new car off the lot. Cargapinsurance.net offers valuable information regarding car gap insurance policies in which your interests are completely protected in case your new car is ever totaled.