Is auto gap insurance something you should be concerned about?
What is Auto Gap Coverage?
This type of car insurance coverage comes into play when collision coverage only pays out the actual cash value of your vehicle when a claim is filed. This can be slightly different from what you likely still owe on your car.
When this happens there’s a gap between what you get and what you owe. Auto gap coverage helps to cover this difference so you don’t end up with a bill you can’t afford.
Do I Need Gap Insurance?
Whether or not you need auto gap insurance is something you can determine based on a few things. First is the value of your car. Since it depreciates quickly, more expensive vehicles could result in a bigger gap. This might be a situation where auto gap insurance could help.
If you’re at a point where you owe less than what your car is worth then auto gap insurance probably isn’t something you need. The gap won’t be big or won’t be existent which means you won’t be stuck with a hefty bill if you’re to get into an accident.
The last scenario is if you were able to make a small down payment on your vehicle instead of a large one. This would be a good situation to have auto gap insurance as the amount you have on your outstanding loan is likely a lot.
Contact Us For Help
If you still have questions on auto gap insurance be sure to get in touch with us so we can help you directly!