Gap Insurance – Things You Should Know
Many drivers are not even sure of what gap insurance coverage includes, let alone how a gap insurance calculator works. It is more important than ever these days to make sure you have the right amount of auto insurance coverage to protect yourself as a driver on the open roads. Problems can arise from legal and financial issues if you are involved in an accident and do not have the amount of car insurance you are required to have. In fact, if you are driving without insurance and have a wreck, your own expenses will not be covered even if you are not the at fault driver.
The Basics of Gap Auto Insurance Coverage
- If you owe on a car in the amount of $25,000 due to your loan payments, you may still find the car is valued at a lower amount. This is often very true of a car loan once you drive the vehicle off the lot.
- The problem is the insurance you have for it will only want to pay the value of the car in the event of a wreck .So if the car is valued at only $20,000 and you total the car, your standard car insurance policy will cover the value amount of $20,000. You will be left to pay the outstanding balance of $5,000.
- In some instances you may even be required by the financial lender of the car loan to cover this extra gap insurance to make sure you are not short on your coverage amount. The basic idea is to insure the amount of the loan not just the value of the car.
The bottom line is even if the car is completely destroyed leaving you without a vehicle to drive, the loan still exists and must be paid. This includes any difference in the amount between the total amount owed and the value of the car.
The Importance of Using a Gap Insurance Calculator
When you finally determine what type of auto insurance you need to have, you can get competitive quotes to make a wise choice about your policy. The gap auto insurance calculator is one of the best tricks of the trade to get access to better rates. Until this type of online device existed comparing auto insurance rates was a tiring, tedious and next to impossible task.
You would have to:
- Look up each and every auto insurance provider in your area and their contact information
- Contact each of these companies personally either by phone or by driving to each office
- Give out all kinds of personal information again and again, which takes up so much of your time
- Wait patiently for each auto insurance policy provider to call you back, if they even bother
- Most of the time you would have to still take out more time from your busy day to contact each agent who never bothered to call you back with the final results
For that reason drivers used to settle for bad premium rates by taking the first policy quotes that came along. It is good to know you never have to go through all of that hard work to get your gap car insurance policy rates. You also never have to settle when it comes to the type of coverage you want or the rates you pay to get your coverage.
What the Gap Car Insurance Calculator Does for You
This is the best way to get the peace of mind you need to be a legal driver on the road. Getting different rates to compare to find an affordable gap auto insurance policy will help make you a legal driver in fact. Not only that, but you can rest assured if you do wreck your financed car you won’t be stuck paying the difference when it comes to your loan amount and the true value of the car.
Using a gap auto insurance calculator also empowers you as the driver and the consumer to not be stuck paying rates you cannot afford. While consumers have previously been at mercy of the rates set in place by the policy, our site has changed all that by making provider compete for policy holders.
Get started today with your gap insurance quote and start saving money by simply filling in your residential zip code.