Saturday, December 16, 2006

What Is Gap Insurance?

Before a person decided to purchase a new vehicle, they need to check with
their insurance company about gap insurance because it might already be
included in the auto premium. If is not, this will be something that you can
purchase for a decent cost.


There are some insurers that do not offer this type of insurance at all. If
this is the case, you should try to find a company that offers gap insurance
before you decide to purchase it through the dealer.

Gap insurance is the insurance that will pay for the difference between what
you would owe on an automobile and what the insurance company is going to
say it is worth. This insurance is a must for someone who may be considering
purchasing a new vehicle since a new vehicle will depreciate in value as
soon as it is moved from the dealer's lot. You will appreciate this
insurance if you are ever in an accident and still owe money on your car.

Usually gap insurance is built into a lease for any of the leased cars that
a consumer may decide to use. Do not just assume that it is. Make sure that
you are asking questions and finding out the information that you need to
make sure that you are covered incase that you are ever involved in an
accident.
You have to make sure that you are protected.

The premiums are usually low for gap insurance. This is not going to be
something that you are going to spend a lot of money on. For new purchases,
it can be automatically added into your monthly car payment. This is hardly
noticeable and it will allow you to have the protection that will make you
feel secure each time you decide to drive your car.


About The Author: Geoff Spencer is a staff writer at
http://insurance-gazette.com and is an occasional contributor to several
other websites, including http://www.onlinebusinessgazette.com.

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