where can I buy gap insurance?
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Asked July 13, 2015
Gap insurance is usually available from the same location as your other auto insurance coverage. Gap insurance is a specialized type of car insurance that is purchased for vehicles that are being financed. Because of the depreciation rate of cars and trucks, the loan value can quickly become higher than the actual book value of the car. If that vehicle is then totaled out or stolen, you would be responsible for paying the difference out of pocket unless you had a gap insurance policy in place.
Independent insurance brokers can sell gap coverage along with other insurance lines. If your car is leased or financed, you may be contractually required to carry gap coverage. The reason dealerships do this is because gap coverage actually protects the investment of the loan holder rather than the policyholder.
Some dealerships will offer to sell you gap insurance as part of the lease or purchase agreement. Be warned, however, that dealerships are notorious for charge highly inflated premiums, and could be as much as twice as expensive as you’d pay at an insurance company. Additionally, a dealership is not licensed to sell insurance in most cases, and that means buying gap coverage from one is synonymous with purchasing the coverage from a random insurance company. You just don’t know how good the coverage will be until you have to use it, and that is the wrong time to find out you bought gap insurance at the wrong place.
You can also get gap insurance added into the rate you receive when you compare quotes. This method would let you look at how much the coverage would cost, and allow you to modify the plan to have a higher deductible and lower premium, to conform to a different limit, such as including the roll-over amount of a previous car loan and then compare your premium costs between several leading insurance providers so that you can get the best deal possible.
Answered July 15, 2015 by Anonymous