Do you have a car? If the answer is “yes,” you may want to double-check if you have gap insurance. One way to find out if you have gap insurance is to look over your current car insurance policy or your current lease or loan and see if gap insurance is listed. Gap insurance is typically offered as an optional coverage by insurers or as an add-on by dealers. You may already have this type of insurance for your car, so be sure to see if you have it before accidentally purchasing. If you are interested in learning more about gap insurance and how to purchase gap insurance, keep reading our blog. We’ll cover all you need to know about this particular type of coverage and how it can benefit you.
What is Gap Insurance?
Gap insurance usually applies when your car is stolen or totaled. This type of insurance coverage pays the difference between your car’s value and what you still owe on it. Whether your car is stolen or damaged beyond repair, your comprehensive or collision coverage pays out your car’s actual cash value (ACV), minus your car insurance deductible. This is where your gap insurance comes in. Gap insurance may then pay the difference between your car’s ACV and how much you owe it.
It’s important to note that gap insurance only covers the difference in the amount you owe versus the car’s value. Gap insurance will not cover any benefits due to damages, injuries, or repairs. You will first need to have collision coverage and comprehensive coverage to add gap coverage to your car insurance policy.
How to Buy Gap Insurance?
If you think gap insurance is something that would benefit you, you may be wondering about the best way to purchase gap insurance. There are various ways to get gap insurance for your vehicle. Typically, you can get this coverage from either a car insurance provider, an online insurer, or from a car dealership. Before you purchase this type of vehicle protection, make sure you think about the following:
- As mentioned earlier, contact your current car insurance provider to see if gap insurance is already included in your current car insurance policy.
- If your car is leased, contact your finance or lease company to see if gap insurance is included. If you don’t want gap insurance, make sure you let your finance or lease company know upfront.
- When in doubt, ask your finance provider or insurer about gap insurance and its application.
Insurance policies can be complicated and confusing. If you’re interested in gap insurance and how it could benefit you, it’s best to speak to a trusted insurance service provider. At Dunham Insurance, no matter what type of insurance coverage you need, we take the extra time to ensure that you completely understand your coverage and that it fits your needs perfectly. We can provide our customers with bespoke packages as an independent insurance agency. Our objective is always to reduce our clients’ insurance costs by providing quality business, home, auto/marine, commercial, and personal umbrella policies. Contact us today to learn more!