Auto gap insurance is a must-have if you're leasing a car or if you're “upside-down” in your car, meaning you owe more than it’s worth. Read on to learn what gap insurance is and how you can find a low-cost policy.
What is Gap Insurance?
Everyone knows that if you buy a new car, its value plummets as soon as you drive it off the lot. Suddenly, the car you financed for $25,000 may be worth only $20,000.
So imagine that this same car is totaled within the first year or two of owning it. “That’s OK,” you think. “I have collision coverage, which will pay me enough to pay off my car loan and get a new car.”
But then you find out the insurance company sets the value of your car at considerably less than what you still owe on the car. Now you are not only without a car, but you still have to finish paying off the finance company.
This is where gap insurance comes in to save you. A gap policy covers the difference between the value of your car and what you owe the finance company. Gap policies are often required when you lease a car and are a good idea for the first couple of years after you buy a new car.
Where Can I Get a Gap Policy?
You can probably purchase a gap policy through your auto dealership or leasing company. However, this is the most expensive option for what is usually a pretty inexpensive policy.
A better option is to check with your current insurance company to see if they can add gap insurance to your existing policy, or go to an insurance comparison website where you can get quotes from a number of different companies, compare them, then choose the cheapest rate (see link below).
Where Can I Get a Cheap Rate?
Visit http://www.LowerRateQuotes.com or click on the following link to get auto gap insurance rate quotes from top-rated companies and see how much you can save. You can get more tips and advice in their Articles section, and get answers to your questions from an insurance expert by using their online chat service.
by Brian Stevens
Check Out the Related Article : AARP Auto Insurance Interrelated Hint
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