Filing In The Gap Of Gap Insurance
August 6, 2008
For car owners who are either leasing or financing their vehicle getting into an accident even a fender bender can spell financial ruin. Often time the cost of repair is far more then what the car’s value is estimated at leaving consumers responsible for the difference.
Should that car get totalled or even stolen the insurance company will only pay you for the current value which means that now you are not only responsible for paying the remainder of the loan’s balance but you are without wheels as well. Finding yourself with several thousands owed and the necessity of buying a new vehicle can lead to more debt and even bankruptcy if you are already on shaky financial ground.
Now, gap insurance covers whatever the insurance company does not pay out which can save you a large amount of money in the long run and can even save you from the poor house.
While gap insurance is a good idea for everyone there are few consumers who just might need it more then others.
If you are:
- Leasing a vehicle
- Did not put down 20% of the down payment
- Using a finance plan that lasts a couple of years
- Rolled over a previous car loan into a new one.
Now, some leased vehicles already come with gap insurance in the policy though this is not always the case. Make sure to read the entire lease agreement to see if gap insurance is needed. Many dealers will sell gap insurance but this is generally the more expensive option and so consumers should look at their own auto insurance provider for a cheaper alternative.
Gap insurance is relatively low cost and extremely valuable if it is ever needed. Like all insurance policies you may want to first shop around before making a purchase. Gap insurance can save you from severe losses should you ever find yourself in need of it.
Recent additions:
- Almost Half a Million Could be Uninsured in Colorado
- Health Insurance Outpaces Inflation
- New Jersey Insurer Starts Safety Plan
- Georgia Motorists Get A Break
- Low Profile Car Can Save On Insurance
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