Archív kategorií: Calculate Gap Insurance
Simply put, it is insurance that fills in the gap between what you owe on your vehicle and what it is worth if your vehicle is deemed to be totaled in an accident or stolen. Not all companies offer the same gap insurance policies so it is very important that you know exactly what type of gap insurance you are buying.
No one is required to purchase gap insurance, although it is beneficial to have if you won’t be able to afford to pay the difference between what the vehicle is worth and what you still owe out of pocket. The bank will still want their money whether you have your vehicle or not, so purchasing gap insurance is a good idea.
Gap Insurance Policy
With any luck you will never need to use your gap insurance policy. This is great news because it means that you still have your vehicle. Although you agree to purchase gap insurance at the time of obtaining the vehicle loan all is not lost if you decide to trade the vehicle in before the loan is paid off.
Depending on the balance of your loan, trading off or selling the vehicle will entitle you to a gap insurance refund payment. The same holds true if you should pay off your vehicle loan earlier than expected. The gap insurance refund payment is determined by how early you pay off the loan.
- Chances are that you will have to seek out your gap insurance refund yourself, although some lenders will let you know you have this refund coming to you. You will need to gather a few items to obtain your gap insurance refund.
- These items are an odometer disclosure statement that is obtained the day you trade in your vehicle, the statement showing that the new lender has paid off your old lender, and a copy of the paperwork proving you purchased the gap insurance.
Once these items are in hand you need to go back the dealership where you purchased the gap insurance policy to let them know you want to cancel the gap insurance. They will take care of the paperwork with the gap insurance company who will then mail you the check for your gap insurance refund.
Any car, new or used, loses up to 25 per cent of its value immediately it leaves the yard or dealership.
If a car, purchased on credit or finance terms gets wrecked beyond repair, is totaled or gets stolen, the buyer will still be liable for making the car payments as usual.
If the car had comprehensive insurance cover, then the insurance cover would make payments for the car at its current market value.
The car dealer would be expecting the difference between the market price and the buying price, to be footed by the buyer. This amount is usually quite considerable, between 10,000 and 25,000 dollars. Footing this bill is not easy, especially if it is payments for a car that is stolen or wrecked beyond repair.
This is where gap insurance comes in handy.
Gap insurance covers the difference between the car purchase price and the car’s market value at the time it was totaled. In the state of California, auto insurance companies allow buyers to acquire gap insurance for vehicles up to eight years old, but not older.
This is good news as the car buyer can walk away from a car accident and not have to pay a cent for a totaled car, yet be able to negotiate a new loan for another car.
In the state of California, gap insurance is not mandatory and car buyers can get away without paying for this insurance cover. However, the roads and highways in California are not getting any safer and it is much better to have gap insurance than to not have it.
Gap insurance is refundable in California. However, this depends on a number of factors. If a car, purchased on credit or finance has gap insurance, it can be sold off to a third party and the initial owner cam then make a claim for the gap insurance that they paid.
It is important to note that documentation regarding the car sale, insurance and others, will be required to effect the refund. Refund based on a refinance option is not always guaranteed and will depend on the car dealer, car sale agreement as well as the terms of the Gap insurance. It is always important to clarify this fact early.
The three main types of gap insurance that is marketed to senior citizens are:
- Prescription Medicine Plans
- Hospitalization Insurance
Each type of gap insurance has its own benefits. It is essential that you read through all of the terms and conditions before signing up for a plan.
If you have Medicare, you should consider getting Medi-Gap Insurance. This is due to the fact that Medi-Gap was specially designed to go hand-in-hand with Medicare. This kind of gap insurance will ensure that you have nothing to pay. Medicare typically covers seventy-five percent of medical costs.
With Medi-Gap Insurance, you will not have to pay any additional expenses because it will make up the difference between the two plans. When purchasing Medi-Gap insurance, make sure to do it through an authorized Medicare provider.
Gap insurance can also cover the costs of your prescription medications since basic Medicare does not. Prescription drugs can be extremely expensive if you do not have insurance that will pay for them. The best thing to do is purchase gap insurance to cover the costs of any needed medicine.
This will save a lot of money in the long run. Not only that, but it guarantees that you can get your prescription filled when needed. You will not have to wait for a paycheck to arrive if you want to go to the pharmacy.
You can also benefit from gap insurance for hospitalization. This type of insurance will pay for the medical bills if you have been hospitalized. However, most Medicare plans pay all hospitalization costs.
Therefore, it is essential that you read through the fine print on your insurance plans. If you are going to buy gap insurance for hospitalization purposes, make sure that you understand the rules and regulations. The plan needs to be beneficial to you. Otherwise, the additional coverage is not worth buying.
Before entering into a gap insurance contract, you should have a lawyer read through the plan. They can explain anything that you do not understand. Along with that, they have the ability to find loopholes that can exclude you from receiving benefits. Your lawyer is the best person to use to accurately judge how a good a plan is. It can save you from a lot of trouble down the line.
Lot of drivers decide to purchase their automobiles from main franchised traders each time.
This is because they have got a broad alternative of vehicles, frequently sold-out as part of the producers used car scheme, warranties, mechanical check and peace of mind are also provided for the consumer.
If you are buying a used car then you have to visit a franchised trader because some of the Internet marketers are merely agents so they are acting as middle men between you the consumer and the franchised trader.
Because of the current economical meltdown, the ever arising easy way at which one can get data over the World Wide Web, a lot of traders can no longer survive by selling cars only.
Some car trader groups have got committed finance sections specifically organized to trade finance and insurance policy, merchandises such as gap insurance, extended warranties, trey insurance with other insurance related merchandises. Main traders and car supermarket today now budget to rake in as much money as possible from finance and insurance as they do from the sale of cars. Some car traders will want to make over $1500 profit per new or used car sold, and huge percentage of that profit will come from finance and insurance products.
The increase in this kind of insurance merchandises has ensued in traders directing their sales teams to trade gap cover on every automobile they sell. All the same, insurance policy prices can vary dramatically when bought from a car trader or supermarket.
You will want to ask how much should you pay for a gap insurance policy?
A survey of main traders, car supermarkets, and some freelance traders was accomplished and observed a startling array of gap insurance prices.
The monetary value of a gap insurance policy at main franchised traders is about $4000 for a policy which will address vehicle replacing up to the value of $15000
Car franchises like BMW, Audi, Porsche and Mercedes seem to be exploiting the fame of this kind of insurance with prices as high as $1000 per vehicle replacement policy. some prestige franchised traders calculate gap insurance prices on percentage of the vehicle selling price leading to a high policy costs.