Owner, Courtney McCutchen Insurance, San Angelo, Texas
James is right on. This is typically going to be upsold heavily at the auto dealership. If it is not required by the financing company and you are interested in coverage you will often be better served to shop around rather than going with the policy the dealership offers you.
Auto insurance Gap coverage is a physical damage coverage that pays the difference between the loan balance and the actual cash value of the vehicle If it is totaled. This coverage is usually purchased on leased vehicles, but can be purchased on conventionally financed vehicles also. Contact an agent before you purchase the car and coverage to have an idea what the coverage will cost. With that information you can compare at the dealership to decide if want it and if you can get a better price with your agent or the dealership.
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Auto gap insurance is designed to reimburse you for the difference in the current value of the car and what you owe on the car, in the event there is a total loss. Since a car rapidly depreciates after you make the purchase, it is very possible (especially with little or no down-payment or trade-in), that you will have this "gap."
Typically, the cost is not very expensive, and it can be taken out at the time you purchase the vehicle. You can also purchase a gap policy to cover your deductible, which will reduce your out-of-pocket costs. As an experienced car insurance broker, this coverage is often discussed with our customers.
You can often buy coverage from your broker, lending institution or dealership.
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Typically, the cost is not very expensive, and it can be taken out at the time you purchase the vehicle. You can also purchase a gap policy to cover your deductible, which will reduce your out-of-pocket costs. As an experienced car insurance broker, this coverage is often discussed with our customers.
You can often buy coverage from your broker, lending institution or dealership.