Another important car insurance issue
is gap insurance. Most of us have gaps in our insurance, we just
don't know it. Those who lease cars for instance should always have
this kind of insurance. This type of insurance in going to take care
of you in all the ways that your regular car insurance
doesn't. That is why it is there to begin with. Its job is to make
sure that you are really covered for any contingency. With the right
gap insurance you will be taken care of no matter what
You see, when you are financing a car
the amount that you owe is not always the amount that the car is
worth when disaster strikes. No matter what the insurance company
says the lender is still going to want to get the money they lent to
you back, it is as simple as that and gap insurance is the insurance
that makes this possible. They will pay for what your regular
insurance policy will not. Keep in mind that new cars lose over 20
percent of their value as soon as they drive off of the lot, that is
a big gap created instantly.
Anyone who finances a car should look
hard at getting some great gap car insurance, this insurance has
saved the day for millions of people and you just never know when
trouble will come knocking on your car door.
If you are leasing a car you will
probably find that you are actually required to get this kind of
extra car insurance. The dealer knows that these gaps exist and he
wants to make sure that he can get his money back when he needs to,
dealers do not want to take any chances and neither should you. Not
all of the car dealers who require this insurance provide it
themselves. If yours does not then you need to start looking around
at all of the different policies out there. Not all of them are
created equal and you need to make sure that you get the most value
for your money.
Don't jump for gap insurance before
you know you need to. First check with your regular car insurance
company to see how they deal with financed or leased cars. Some will
cover the entire amount owed and if this is the case with yours then
you will not even need to get this insurance at all.
Here are some more things about gap
insurance that you should know:
In order for this insurance to be
effective and for it to pay out you will most likely need to have
comprehensive insurance and collision. These are something that most
of us have anyways, but just in case: beware.
You need to know that you can get gap
insurance even if you have had your lease for some time. You are
usually allowed to get it at anytime, not just the beginning of a
lease or at the time of financing.
For the gap insurance to pay out you
need to be following the rules stated in the lease
There is a chance that you will have
to make your loan payments while waiting for the gap insurance
payment to come through.
Talk to your insurance provider about
all of these things and if you have any questions feel free to ask
them before you get the