The most exciting time in everyone’s life is when it is time to shop around for a new car. Many people have an idea of the vehicle they see themselves in. They picture themselves driving down the coast with the top down, driving across rugged terrain in the desert, or rolling into the city with some glam. For most, it takes months or even years before they are able to afford a new car. People will save up, work extra hard, and then one day they are ready to buy.
When buying a new car, you want to ensure it is fully protected. Accidents happen whether we like them or not. It may be the other party’s fault, or it may be your fault. No matter whose fault it is, if there is damage to the car, the value of the car will drastically drop. Even worse, if the accident is more than a fender bender, you could be looking at exorbitant costs to fix, or the vehicle could be totaled. When shopping and comparing car insurance policies, make sure you have the appropriate coverage to protect your new asset.
What Is Gap Insurance?
When looking at various car insurance policies and terms, most companies offer additional coverage for gap insurance. The gap insurance add-on is not necessary for everyone, but if you have a newer car it may be something you want to look into.
Gap insurance is special coverage that will protect you in an accident. Specifically, this insurance is intended to help should the value of your car be less than the amount of money owed on the car note or loan. This insurance can be a lifesaver should your vehicle get in a major accident where it is deemed totaled. If you are covered by gap insurance, the insurer will make up the difference from the value of the car and pay up to the amount owed.
If you were to total your new car and do not have gap insurance, the lender would still hold you responsible for the amount owed on the promissory note you agreed upon during the purchase of the vehicle.
Best Companies Offering Gap Insurance
When purchasing a new car, some dealerships will offer gap insurance. Although, it may be easier and more affordable to just add gap insurance to your current or new car insurance policy.
There are so many car insurance companies to choose from out there. All companies have different price points, various policy details, and various levels of customer assistance. When looking for a Gap insurance Policy, first evaluate the type of company you would like to hold a policy with. There are standard companies like Geico, Progressive, and Allstate. There are also the budgeted car insurance companies like USAA, The General, and Esurance.
When comparing the various policies, make sure you are comparing the terms side-by-side and dollar for dollar. This will give you a true perspective if the policies are similar or if the cost difference is just based on the actual policy differences.
Protect Your New Asset and Ride In Style
Now that you have full coverage of your new vehicle, you can ride in style and not be overly worried that something could happen to your car. Being fully covered will give you the peace of mind you need to not be an overly defensive driver. By taking the time to compare various offers, you will be able to keep the coverage affordable, yet full so your exposure to risk is minimal. Sign up for gap insurance so you do not end up paying for a car you don’t own, should there be an accident.
