gap insurance Collisions and comprehensive only include the market value of your car, not what you pay for it – and the new car depreciates quickly.
If your car is some or stolen, there may be a “gap” between what owes the vehicle and insurance coverage. To discuss this, you might want to see gap insurance to pay the difference.
Note that for rental vehicles, gap coverage is usually rolled into your rent payment.
When you buy or rent a new car or truck, the vehicle begins to depreciate its value when he leaves a lot of cars. In fact, most cars lose 20 percent of their value in a year. Standard car insurance policies include value depraved from cars – In other words, the standard policy pays the current market value of the vehicle during the claim.
If, when you finance the purchase of a new car and put only a small deposit, in the early years of vehicle ownership, the number of loans can exceed the vehicle market value itself.
In the event of an accident where you have been severely damaged or numbered your car, gap insurance includes the difference between what the vehicle will pay (which will be paid by your standard insurance) and the actual amount you owe him.
When you might need gap insurance?
We recommend that you consider buying a gap insurance for your new car or truck purchase if you:
- Produce less than 20 percent down payment
- Funded for 60 months or more
- Rent a vehicle (bringing gap insurance generally needed for rent)
- Buy vehicles that depreciate faster than average
- Roll up negative equity from old car loans to new loans
- Where you can get gap insurance
Your car dealer can offer to sell your gap insurance on your new vehicle.
However, most car insurance companies also offer it, and they usually charge less than dealers. In most car insurance policies, including gap insurance with a comprehensive collision and coverage only adds around $ 20 per year for the annual premium.