Many car buyers still do not understand the benefits of gap insurance. Lots of them still believe that having a comprehensivecar insurance on their car is important. Yet the benefits of a gap insurance policy cannot be overemphasized. Any car bought through credit or finance plan is still liable to either an accident that will completely write off the car or it may get stolen and never be found.
Should such an unfortunate incident occur, the car buyer will be expected to continue paying the car loan until it it is fully paid, despite the fact they may never see the car or use it ever again.
If the car had a comprehensive insurance policy, the insurance will pay for the value of the car at the time of the accident. It is important to remember at this point that a car once purchased, loses value very fast, immediately its driven off the dealership.
So if a car cost about $20,000, it loses about 20 per cent of its value. The difference between what the car cost and what the insurance will pay will be the responsibility of the buyer.
This is where gap insurance comes in handy. Gap insurance will cover the cost between what the comprehensive cover will refund and what is owed in total. This amount can be quite substantial, sometimes up to $15000. Paying such amounts especially for a totaled car is not very easy. This shows whygap insurance is so important.
In the event that an accident happens and the car is totaled, the car buyer with gap insurance will simply walk away without having to pay a cent. Gap insurance pays no matter who is at fault.
A reliable provider of gap insurance in the US State of California is Jim Moran And Associates. This insurance services provider has two main gap insurance products. The first is the Gap Protection Plan. In this plan, if the car is written off, any debt still owing on the car will be written of by the dealer as this insurance plan will compensate the dealer. All that the car owner will need to pay is the insurance deductible.
The GAP Plus Protection is similar to the Gap Protection Plan, only that this type of gap insurance cover also covers all other out-of-pocket expenses such as the insurance deductibles and others, up to a maximum of $1000. This ensures that the borrower walks away from an accident with no bills to pay and can begin the entire process of purchasing a car once again.