Auto Gap Insurance
If you're thinking of buying or leasing a new car, you need a gap insurance policy to fully protect your investment.
Explains how gap insurance works
Introduces a gap car insurance provider to fit your needs
Buying a brand new car is an exciting time. But don't let all the fun keep you from the serious business of gap insurance protection.
Free Instant Quotes:
If you need gap insurance by itself (you have a regular policy already,) visit Driver's Select Gap Insurance service where you'll be able to get a quote for just auto gap insurance.
If you need a whole new insurance policy, your best bet is to get an quote from Netquote.
How gap insurance works
Why is an auto gap insurance policy so important?
Because standard comprehensive and collision auto policies only cover your new car's "fair market value". And that can be as little as 80% of what you paid for your car, starting the minute you drive it off the lot.
This means that if you're involved in an auto accident that leaves your new car "totalled", (we all hope this never happens,) you could end up paying off a loan on a car that you can't even drive.
That's where gap insurance comes in.
A gap car insurance policy insures you for the difference between what you owe on your car and what your insurance company says it's worth.
And if you're leasing your car, it's very likely the leasing company will require gap insurance as well.
Gap insurance coverage would also become critical should your car (knock on wood) be stolen. Thieves prefer new cars (who doesn't), and they seek out specific models, which also usually happen to be the most popular models of cars sold. (Honda Accord, Ford Taurus - etc. etc.)
If your car is stolen, the insurance situation is the same as in the case of an at-fault accident on your part: comprehensive insurance will cover the value of the vehicle, but not necessarily the value of the loan that you owe to the bank. You could be stuck paying thousands for a car that's long gone. Add that to the truly disheartening feeling of having your car stolen, and that makes for a really rough time.
Auto gap insurance is not a policy you'll need forever, but for the first few years of ownership, it will give you some driving security and peace of mind. And the best thing about it is that it doesn't cost much. Get the most current gap insurance quote.
Or if you need a whole new policy, get a quote from Netquote.
You'll feel confident driving your new car for only a few extra dollars a month. But, as with all other types of coverage, there are a few different gap car insurance policies to choose from:
Finding the right gap car insurance policy
Most dealerships and auto lessors offer gap insurance policies. But these usually come at a significant mark-up.
You're much better off finding your own gap insurance policy.
Unfortunately, not all providers offer gap insurance. In addition, if you already have an auto insurance provider you like, you might not want to switch companies just to add one small (but important!) policy.
Driver's Select is your best bet if this is your situation. An agent specializing in gap insurance will explain the coverage further, and you will not have to alter your current policy in any way.
If, on the other hand, you are looking for a brand new policy to cover your car, you might want to combine all your coverages under one roof. In this case, visit Netquote where you may be able to get gap coverage combined with your regular comprehensive policy in most states. Click here for a fast quote.
Buying a gap car insurance plan online is as easy as that. If you want to learn more about safe coverage, read our car insurance guide.
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