The moment that you purchase a new car from a dealership its value decreases. Gap insurance protects policy holders in situations where there is a gap between the value of the vehicle and what you owe on the vehicle.
Many people who purchase new vehicles made the decision to purchase gap insurance coverage because this type of insurance helps you pay off your car after an accident.
When a car is completely destroyed in a wreck, car insurance companies are only required to pay the market value of the vehicle that was destroyed.
Purchasing gap insurance may be a requirement by your lender. This is why it is important to talk to your lender about the requirements of your lease. You can purchase gap insurance from the dealership that sells you the vehicle or you can purchase the insurance from an insurance company after the fact.
Purchasing gap insurance is recommended in several situations.
First, if you are purchasing a vehicle that is very expensive. Also, when you are purchasing a new vehicle without a down payment and owe a significant amount on your car.
You should also consider purchasing gap insurance if do not have any savings to help you in the event that you need to cover the difference between the amount you owe on the loan and the actual value of the car if it is destroyed in an accident.
Of course you should consider how much risk you are willing to take when you consider whether you are going to purchase gap insurance. If you are risk adverse you should consider purchasing gap insurance.
If you have any questions about gap insurance or about your personal injury claim you should contact the lawyers at Hutchison & Stoy.
We are happy to offer free case consultations to individuals who are trying to determine what their legal rights are.
The Warriors For Justice are happy to fight for our clients.