Are you familiar with gap insurance, or any additional insurance coverage? Even if you don’t think you need additional coverage, you should still know what they are. Below, we’ve broken down the topic of additional coverage to make it seem less confusing. At Insurance Navy, our goal is to help you with any auto insurance needs you have.
Uninsured/Underinsured Motorist Coverage
This pays for injuries and property damage caused by a hit-and-run driver, or motorist. But, only if they have no liability insurance. Also, it will pay when your medical and auto bills are more than the other drivers’ liability coverage. Next, we’ll break down gap insurance.
Gap insurance isn’t necessary but can be helpful. It’s especially valuable for newer cars being financed. That’s because when you buy a new car, its value drops as soon as you drive it off the lot.
Also, by the end of its first year on the road, a car’s value can depreciate quite heavily. Just because the car’s value has gone down, doesn’t mean your car loan has too.
Gap insurance covers the cost difference between what your car is worth in cash when totaled and the balance left on its lease. You will be responsible for this if you do not have gap insurance. You will also have to pay off a loan of a totaled car. Some insurance companies may also pay your insurance deductible.
You can buy gap insurance through your insurance company. You can do this as a one-time fee combined with monthly payments. Or, you can do it as a one-time fee from insurance companies that only sell gap insurance.
As we said, additional insurance coverage, including gap insurance, is not a necessary buy. Although, hopefully, this article has shown you in a simple way why it can be so helpful.
Do you need more information about a total loss, loan or lease gap, or a leasing contract? Our agents and customer service team are here to help with your supplemental gap insurance coverage needs. Call us today at 888-949-6289 or visit your nearest Insurance Navy location. For your convenience, Insurance Navy is open from 8 a.m. to 9 p.m. CST, 7 days a week.
Additionally, we can help you find an insurance quote right on our website. Because we want to help you save money wherever possible, we offer our insurance quotes completely free of charge.
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