Top 10 Things You Should Know About Auto Gap Insurance
Gap insurance pays the difference between the value of the vehicle and the balance of the loan on the vehicle in the event of an accident. It really comes in handy when the car still has a balance owing on a loan after the insurance pays for damages. There are 10 other things you should know about auto gap insurance.
10 Things You Should Know About Auto Gap Insurance
Most insurance companies will not recommend or mention auto gap insurance. You will have to request it.
Some gap insurance policies will not pay the whole balance especially when it reaches a certain amount.
It will not cover missed payments or late fees.
When getting gap insurance the term of your car loan cannot exceed 8 years.
It is recommended for new cars but can be used for used cars as well.
The car must be purchased with a loan and not in cash.
Most policies will cover your deductible.
Gap insurance is not available in all states.
Car dealers tend to charge more for gap insurance than other places.
If you buy it online, research the company offering gap insurance.