We offer highly competitive rates.
Enter your zip code above for free Auto Gap Insurance quotes now!
- Access to the largest quote network.
- Rates tailored to fit all budgets.
- Agents standing by waiting just to assist you.
Get Free Auto Gap Insurance Quotes Today!
Auto gap insurance is not something that most vehicle owners think about when they are looking for car insurance. The reason is because most owners assume that if something happens to their vehicle that the insurance company will pay, but there are situations where the owner is sadly mistaken. Gap insurance is an addition to an existing policy or a separate policy that covers the difference between the value of the vehicle and the actual amount owed on the vehicle. Unfortunately vehicles depreciate at a very quick rate leaving consumers often owing more than the vehicle is worth in the first couple of years after the purchase. The old saying, “that a vehicle looses their value the minute they are driven off the lot”, is not too far from the truth.
Though auto gap insurance is not a requirement, it should be according to many financial planners and other professionals. Here is an example of why gap insurance is needed; if your vehicle is valued at $10,000, but you still owe $15,000 the insurance company is only obligated to honor the value of the vehicle, this leaves the policy owner with a $5000 deficiency, which most can not afford. This can leave the vehicle owner owing money without a vehicle so it is important for car owners to understand that they may not be covered in case of an accident or stolen vehicle. For more information about choosing the right auto insurance, please look at our Auto Insurance Buying Guide.Auto gap insurance is often recommended for individuals that are leasing their vehicle. This is because the lessee is generally upside-down because they do not have equity in the vehicle. The typical lease purchase consists of no down payment, no trade in and therefore they owe more on the vehicle than the current market value, making gap insurance imperative. One thing to keep in mind is the fact that gap insurance is only available for new cars that will be financed. Consumers purchasing a used vehicle are not able to obtain gap insurance because of the liability to the insurance company. Certainly something to consider when looking for automobile insurance, as always said, better safe than sorry.