Video: New Car’s Coverage: Gap Car Insurance
Date Posted: December 11, 2007
Source: AutoInsurance
Category: Auto Insurance
Description: The moment a new car is driven a lot, it loses its value immediately because it’s consider a used car. So, what’s that mean to your auto insurance coverage? Generally, auto insurance covers you for the actual cash value of the automobile, not how much actually owe from the bank that lend you the money to buy it. If your car is stole or damage beyond repair of an accident, the actual cash value maybe 14,000 dollars but you owe 16,000 dollars to the bank. The difference of that 2,000 dollar gap will only be covered if you have gap insurance. According to Jem Abassah from Allstate Insurance Company, ”A lot of claims are surprise because they don’t think about it. Gap insurance is a typical enough part of the standard coverage. Discuss it with your agent to find out if the insurance company offers this options. You can also buy it from the dealerships but most of the time on a high premium rate. Make sure it’s not part of your current auto insurance policies before purchasing additional auto insurance and not all insurance companies offers gap insurance so you need to ask your agent about it. So who needs Gap insurance? Experts generally say anyone buying a new car should consider... and if you’re leasing a car Gap insurance is often required. check out this website as it provides ideal gap car insurance coverage... select your state for more affordable car insurance quotes.
