When you take out a car loan it may be important to look into gap insurance to fully protect you and your vehicle once you have left the dealership. It’s a fact that the minute you drive your new car off the lot it depreciates by up to 25%.
This means that you are instantly owing more for your vehicle, over time of your loan payments, than what it’s now worth.
Regular car insurance will pay for the devalued price of the car, but not the “gap” between the devaluation and your finance payments.
To be fully covered for the amount between the two valuations there are now companies that offer gap insurance to making sure you are fully covered.
It isn’t required, but more and more drivers are realizing the importance of gap insurance, and in some cases your regular insurance company may filter it right into your regular policy.
If you lease many lease contracts require you carry gap insurance, but if you’re purchasing on a payment plan it isn’t required, making that great price on a new car appear not so great by the time your get your car home.
Now there are several insurance companies that offer separate gap policies to provide the complete coverage you may need. But how do you find one you can trust to come through with payment if you really need it.
You needn’t start your search any further from home then your own personal internet. In this way you can do your research to find:
- quality and reliability in terms of payments
- heaven forbid
The first thing you might want to do is check the companies that have been providing gap insurance the longest. Chances are they are the most reliable and they have also handled enough claims to understand the business. Once you have narrowed your search look into pricing.
Check each one in the same way to make sure you are getting a fair price for the same coverage. Once you’ve narrow that search then it’s time to check with other sources, such as independent review sites, to see which gap coverage provider has the best reputation for service. In this way you will be able to understand what is offered and what are the best quotes for the right gap coverage.