Getting into a serious wreck that wasn’t your fault is one bad situation to be in; finding out your vehicles is worth less now than you owe your lienholder is even worse. For situations such as this that arise for owners of new cars they’re still paying on, there is GAP insurance. This potentially pocketbook-saving insurance policy is there to cover the difference between what your car is appraised for after an accident and what you currently owe on your car note. To better explain why GAP insurance coverage is imperative for persons paying their car off still, we provided the short example below to illustrate what may happen if you are without GAP insurance.
Suppose you get into a dinger with a truck and your car is smashed beyond repair, requiring you to get a new vehicle altogether; your full coverage insurance will pay for it, yet your vehicle – which was once worth $18,500 – is now only worth $15,200 and you still owe $16,700 on the car. GAP insurance plugs in the difference that your insurance company won’t account for – in this case, there would be $1,500 that your GAP insurance would pay your lienholder to offset the difference.
Having this insurance policy in place would be imperative for anyone that is on a lease or purchasing a car simply because most people cannot afford to pay the difference after an appraisal is done. GAP insurance is there to cover your tail when the other guys won’t. Many carriers offer this type of insurance, and Discount Auto Insurance has the inside track on getting your quote for GAP insurance in a timely, professional manner.
Vehicle owners love having the peace of mind that no matter how much their car is appraised for, their GAP insurance will foot the bill on the difference; this is why nearly everyone that purchases a new car should have this inexpensive GAP insurance coverage to complement their regular automobile insurance to have a contingency plan in place should an unexpected accident occur. Discount Auto Insurance is well-versed in this type of insurance coverage and can assist you in obtaining a GAP insurance quote through their website portal, open for your use 24/7. Don’t take the chance of having to pull money out of savings to cover your replacement car; get GAP insurance today to protect your assets tomorrow.