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When a vehicle is totaled in an accident, a car insurance policy only covers its market value. If an owner has a loan on a totaled vehicle, he may end up owing money to the bank if the market value of the car is less than the loan balance. In this case, gap insurance can save him hundreds or thousands of dollars.
Guaranteed Auto Protection, also known as GAP insurance, can be purchased when an individual finances a new or used vehicle for many years. Buying GAP insurance will protect an individual from owing on a car loan if a car is totaled by an insurance company after an accident or theft.
Gap insurance is an optional insurance policy that covers the difference or "gap" between the amount you owe for your car and its actual value. Buying gap insurance is a good idea because even if your vehicle is brand new, it will depreciate between 20 and 30 percent as soon as you drive it off the car lot. Therefore, if your vehicle is totaled or stolen and your insurance company pays you for its actual value, you could still owe thousands of dollars toward the payoff of your auto loan even several years into your ownership. You can obtain gap…
Gap insurance helps you pay the bank if you have a serious issue while you are upside down on a car loan. From the very beginning a new car is upside down, as it loses significant value right away. Gap insurance is like buyer protection plans on other consumer goods. Buying gap protection may save you money, but you will more than likely spend more money on this type of insurance than you will ever benefit from it.
The sunroof is becoming an increasingly popular option on many modern cars. Whether small panels over the driver's seat, or multi-paneled sunroofs that provide fresh air and light to rear seat occupants, the addition can be a part of just about any type of vehicle. However, sunroofs do sometimes leak. Knowing what symptoms to watch for can ensure you get your sunroof repaired before the damage becomes too severe.
Should you get into a car accident or your vehicle is stolen, gap insurance protects your vehicle loan. The insurance covers the amount you still owe on the vehicle compared with what it was worth. Unless your car is paid off, gap insurance gives you piece of mind that if the unexpected happens you won't get stuck with the bill.
If you've ever shopped for a new car, you've probably heard of gap insurance. But unless it was been explained to you, you probably never purchased it. As the name implies, gap insurance is intended to bridge the gap between a vehicle's purchase price and its present value.
Not everyone realizes that if you purchased gap insurance and you sell your vehicle before it is paid off you are entitled to a partial refund. You need to initiate the refund. I have only had one gap insurance company that let me know if I had sold the vehicle I was entitled to get a partial refund.
From the moment you drive your new car off the lot, the value of the vehicle depreciates significantly. Most new car owners who finance their purchase owe more to their lender than what the car is worth. If the car is totaled, the car insurance will only pay the lender the estimated value of the car. Gap insurance ensures the lender is paid the outstanding balance in full if the owner's car insurance does not cover the balance.
Canceling gap insurance is simple. Contact your loan originator or your gap-insurance agent to cancel your policy over the phone. You may have to refinance your loan if you want to lower your monthly payments.
Many mysteries and secret terms such as "power train" and "APR" are involved in purchasing a car One of the least understood terms is "gap insurance." Knowing what gap insurance is, and is not, is important in understanding how much your car will cost and what you must do if your new car becomes a total loss.
Part of buying a new car or truck is making sure that you have appropriate insurance coverage for your new vehicle. Regardless of what your normal auto insurance covers, if you are buying a new vehicle, you should consider buying additional Gap Insurance. To help you understand how Gap Insurance works, read the scenario described in the following steps.
