June 9, 2015
Do You Need Gap Auto Insurance?
Gap Auto Insurance Basics
Buying a new car can be very exciting. From choosing your favorite color to ensuring that it is stocked with the newest tech features, customizing your car can is a lot of fun! Unfortunately, as soon as you drive your car off the lot, it starts decreasing in value, which can mean serious issues with your auto insurance policy. Investing in a gap insurance policy can help to make sure that you have the right amount of coverage for any peril that you may encounter with your new car.
If you took out a loan to buy your new car, you are required to carry full coverage auto insurance, not just the liability insurance that is required by law. However, no auto insurance company will provide more coverage than your car is actually worth if your vehicle is stolen or totaled. You will only receive a payout for the actual cash value of the vehicle, minus your deductible.
While this may seem like a lot of money, it will most likely not be enough to cover what you owe on your loan. This is where gap insurance coverage will kick in. Gap insurance is meant to provide coverage for the difference of what you owe on your new car after it is a complete loss, and what your existing auto insurance policy will payout. While not everyone needs a gap insurance policy, if you have not paid off at least 20 percent of the out the door price of your vehicle, you should consider a policy.
For all of your auto and gap auto insurance needs to ensure that you and your new car are properly covered, contact the insurance professionals at Brewer-Lloyd Insurance Group in Mesa, Arizona. We will work with you to make sure that you have the coverage that you deserve.