Gap Insurance Coverage
GAP Insurance Coverage- Why You Need It
Sometimes it seems as though the world seems to play the game of Life without spelling out all of the rules. We all know what it is like to suddenly find out that we are getting punished in a way for something we didn’t even know in the first place. And when this happens and concerns one of the biggest investments you’ve made, your car, it’s all the more shocking. Believe me, I speak from experience. I found myself in a car collision that was so bad the insurance company told me they were going to total the car.
So I get paid for the car and start over, right? Wrong!
The car isn’t worth today what it was when I purchased it a year and a half ago, and I owed the bank more than it is worth. This little dilemma is a true story, and unfortunately, is a situation that many consumers may one day face, if they have a vehicle that is financed.
What is GAP Coverage?
It’s called a “gap”, this difference between how much the car is actually worth today, and how much is owed to the lender or the bank. But, thankfully, there is a little thing already out there to help us bridge this little gap, and it’s appropriately named auto gap insurance.
If it sounds familiar to you at all, you may have heard the name when you were sitting at the dealership who was lending you the money, or at the bank when the lending officer was going over the details of your loan. It’s a very small increase to your monthly payments, but makes sure that when you find yourself in the position I was in, that you are not held responsible for that gap in the price. The auto gap insurance kicks in and covers the amount owed to the appropriate party.
Where to Buy Gap Coverage
But what if you’ve already bought your car and you are sure you don’t have this auto gap insurance? Well, not to worry, it wasn’t a once in a lifetime offer when you were at the dealership or the bank. First thing you should do is contact your lender and see what your available options are. If that turns out to be a dead end, then call your insurance policy provider and ask them specifically about this kind of coverage. It’s not a regular part of your full coverage plan, and will be a small additional monthly cost. And in the long run, it is worth it many times over.