gap insurance Cheat Sheet: 7 Frequently Asked Questions Answered Now!
1. gap insurance, what is it?
In the event of an accident in which you’ve badly damaged or totaled your car, this covers the difference between what a vehicle is currently worth (which your standard auto insurance will pay) and the amount you actually owe on it.
2. Is gap insurance Worth It?
Is it worth it? The answer lies in one word, Depreciation!
Standard Auto Insurance policies cover a depreciated vehicle at the current market value. But what if you owe more on the car than it is worth? GAP IT! That is when you will see it is worth it.
3. When do you need gap insurance?
Here are 4 easy reasons to say yes…IF:
- You made less than a 20 percent down payment, GAP IT!
- You financed your vehicle for 60 months or more, GAP IT!
- You are leasing your car and…
- You purchased a vehicle that depreciates faster than the average, GAP IT!
4. When can you skip Gap Insurance?
You can skip this coverage when your loan balance doesn’t exceed the vehicle’s value.
5. How much is Gap Insurance?
The answer may be “cheap.” Like all types of insurance, there are multiple rating factors such as age, vehicle, and location. All of these combine to create the rate for your specific vehicle. There is no blanket price for any insurance.
6. Should you buy Gap Insurance from a dealer?
You don’t have to buy it from the dealership. Do your research to find the perfect rate for you. Some companies like A Plus Insurance do the shopping for you! Give us a call and our friendly Agents will get you a quote in minutes!
7. How long do you need Gap Insurance?
If it is a new vehicle, then you need will need it for at least the first couple of years you own it. By then, you should owe less on the car than it is worth. If leasing, for most companies, it is a requirement.
Last Updated on by Shawn Christie