Reader question:
What is gap car insurance coverage and why should I get it?
Anthony
Great question.
Gap insurance coverage is kind of like a buffer that keeps you from getting into the danger zone. It is a little bit of coverage on top of all your other coverage that catches it when it all falls down. Basically, what I mean to say is that whenever your other coverage runs out, gap insurance coverage starts running, so that should you sustain more damages than you foresaw, you have gap insurance to hold your back and make sure that you don’t fall into some very hefty bills.
Gap insurance is usually required by financers for selling new cars, so if you’re buying a newer vehicle you may have to get this anyway. Even if you aren’t, though, it’s a great thing to consider. When you go into a car insurance office to buy coverage, the dollar amount of the coverage you’re buying may seem like a lot, but truthfully in a bad accident it can be used up very quickly, especially if there are injuries involved or if the car is completely destroyed.
For those who have new cars, this insurance helps if your vehicle is destroyed or stolen while you’re still making payments. It pays out the rest of your car and allows you to be freed from the scary possibility of having to continue making payments on a car that you can no longer use. Most financers want you to add gap insurance as soon as you get a car, but most insurance companies will allow you to add it at any point during the lease. If you don’t have other kinds of coverage, though, like collision and comprehensive, your gap insurance may not be honored even if you are paying for it.
Cheers,
Fashun Guadarrama.