Understanding how insurance works, what coverages you should carry and why they are important provides a solid foundation that gives you peace of mind. At Petruzelo Insurance, our agents work with you to provide policy options that met your specific needs. Have children going to college soon and want to be sure you’re financially prepared for hiccups? There are insurance coverages for that. Going into retirement soon or require assisted living? Insurance policies can help here too.
For this post, we’re focusing exclusively on auto coverage that some people may not consider until it’s too late: Gap insurance. It’s wise to look into this now so you’re protected in the future could it come in use.
Keep reading to learn more about Gap insurance and why you should consider adding it to your policy.
What is Gap Insurance?
Gap insurance is an additional insurance option that drivers can add on to their policies to protect them when it comes to financial loss if their car or motorcycle is a total loss. As the name describes, it covers the gap between what is still owed on a car’s lease or loan vs. its estimated value due to depreciation.
Why You Should Carry Gap Insurance
You’ve likely heard the saying that a new car is no longer worth what it was the moment you drive it off the dealer’s lot. This isn’t just something to think about in terms of value or resale if you’ve financed a hefty amount be cautious and protect yourself with gap coverage. Without it, your insurance company likely won’t cover the total balance still due and you’ll be responsible for all the rest of the bill outside of the cars actual cash value (ACV).
Reasons to Consider Gap Insurance:
- You are buying or leasing a car from a dealership.
- The car you’re planning to buy is of significant value.
- You don’t have a large down payment and will have a large loan amount to finance.
- Should your car be totaled or stolen, you are not financially prepared to cover the remaining balance owed after the cars depreciation value.
Talk to an Agent Today!
Some new car dealerships may require gap insurance coverage for vehicles, but it isn’t always an option. While this coverage should generally be requested at the time the vehicle is purchased and insured, it’s important to talk to a knowledgeable agent about automobile insurance policies, what coverages you should have and can assist you with adding gap insurance if needed.
Get in touch today to talk to a Petruzelo Insurance Agent about your options when it comes to protecting your vehicle.