You do have to take into consideration that all policies vary, so it is advised to carefully evaluate the coverage that is being offered to you before purchasing Gap insurance.
When purchasing a new car, if the buyer pays a good down payment, chances are they will not need Gap.
What exactly is Gap insurance?
Basically Gap is the relative ratio difference between the actual value of a car and the amount owed, (the outstanding balance that is being paid out in payments). A vehicle is totaled when it is damaged beyond the total costs of repairs, and often times, those costs exceed the value of the car. This is when Gap insurance is required. GAP stands for; Guaranteed Auto Protection.
Did you know your vehicle depreciates the second you drive it off the dealer’s lot? That’s right! It’s amazing just how fast a car depreciates.
When purchasing a new car with an auto loan, in most cases you will need comprehensive/ collision coverage in addition to Gap insurance.
Why is that?
The comp and collision only offers the actual value of your car.
Where can you find Gap insurance?
Really, the best place to find it is through your car dealer. You can also find it online. Your dealer however, can fully explain the advantages and also exactly who requires it. Sadly a lot of car buyers are unaware of this insurance coverage and are thrown a curve when the dealer starts talking about it.
No matter how you look at it, car insurance is expensive. However, we all need it. You can be the best driver in the world, but is the other person?
The other people you are sharing the roads with are the ones you have to look out for. Often times people think a car accident won’t and can’t happen to them…yet you just never know what’s around the next corner.
You can have peace of mind with Gap!