Archív štítků: Cost of Gap Insurance Coverage
It’s common that accidents take your assets away, mostly your vehicles or conveyances.
While driving, no one knows that there may be a big accident waiting for him. It can also be natural disaster like tornados, earth quakes, flood etc. most of the times you may become a victim of theft. So to avoid all this loss, a gap insurance is a good choice.
Most of the times it happens that you buy a car and then it get totaled due to any reason, now if you have the gap insurance policy then you can claim for the loss. The most popular company among gap insurance providing companies is GMAC gap insurance company.
GMAC gap insurance company
If loss occurs, and your vehicle is on loan or lease, then the company will pay you the difference of the actual cash value of the vehicle and the current outstanding or remaining balance of your lease. The paid amount by the company to you may be less than the actual value of the vehicle.
Gap insurance is mostly favorable for vehicles which are bought from loans or lease. It’s not much helpful for the buyers who have already paid their down or monthly payments. If you are still having payments to make and the car is crashed or stole and the damage is more than the worth of the car then the company will pay you for it.
Gap Insurance Refund
Now come the question of a gap insurance refund. The insurance premium which you pay every month is being used that month. If you have paid the full amount of your gap insurance, and now your car is totaled then you need to contact the company from which you bought the gap insurance policy.
The company will entertain you if there would be any premiums still unused by that. GMAC gap insurance company is very responsive towards its customers. If you have faced any disaster regarding your vehicle then first check if you have paid your full insurance and received a “paid in full letter” from the company then you must take the “paid in full” letter to the specific dealer who was involve in financing you in the gap insurance company and submit an application. you will surely get your refund.
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!