Archív štítků: Best 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.
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.