LOS ANGELES, July 11, 2020 /PRNewswire-PRWeb/
-- Compare-autoinsurance.org has launched a new blog post that
presents the information drivers need to know about GAP
insurance.
For more info and free car insurance quotes, visit:
https://compare-autoinsurance.org/main-benefits-of-gap-insurance/
The moment when a driver drives off the dealer's lot with a
brand-new vehicle, it begins to depreciate. Most cars lose as much
as 20% of their value in their first year on the road. Drivers who
own full coverage and total their cars will only be reimbursed with
the actual cash value of their vehicles and not with the value of a
brand-new vehicle. Gap insurance covers the difference between the
car's current market value and the amount the drivers owes to the
lender.
Drivers who plan to get a new vehicle should know the following
about gap insurance:
- How to get gap insurance. Drivers who
lease their cars might be required by their lenders to get gap
insurance. Policyholders can get gap insurance at an auto
dealership, car insurance company, or lender. Large carriers such
as Allstate or Nationwide sell gap insurance as an add-on to the
collision and comprehensive coverages. However, not all insurance
companies offer gap insurance.
- The cost. Usually, gap insurance costs
as little as $20 per year. In many
cases, car insurance companies offer the cheapest rate for car
insurance.
- When to get gap insurance. When leasing
a vehicle, the leasing company will require to buy gap insurance.
Because automobiles depreciate rapidly, the leasing company will
require the driver to carry liability, collision, comprehensive,
and gap insurance to fully protect its property. Drivers who make a
down payment that is less than 20% of the purchase price should
consider getting gap insurance. In this case, the car's actual cash
value may be lower than the amount the driver owes the lender the
minute it drives away from the dealership. Also, drivers who
finance their cars for more than two years should get this coverage
because the difference between their car's actual cash value and
the amount they owe the lender will occur quickly. Furthermore,
some automobile makes and models depreciate faster than others do
and are more difficult to resell. Drivers who have a vehicle that
has a poor resale history or one that depreciates quickly should
obtain gap insurance.
- When drivers don't need gap insurance.
Drivers who finance their cars are not required to carry gap
insurance for the entire loan term. In most cases, drivers can
discontinue gap insurance coverage when the amount they owe is
lower than the actual cash value of the care.
For additional info, money-saving tips and free car insurance
quotes, visit https://compare-autoinsurance.org/
Compare-autoinsurance.org is an online provider of life, home,
health, and auto insurance quotes. This website is unique because
it does not simply stick to one kind of insurance provider, but
brings the clients the best deals from many different online
insurance carriers. In this way, clients have access to offers from
multiple carriers all in one place: this website. On this site,
customers have access to quotes for insurance plans from various
agencies, such as local or nationwide agencies, brand names
insurance companies, etc.
SOURCE Internet Marketing Company