Vehicle insurance quote: Getting A Car Gap Insurance

2007-06-20 15:49:53

( Insurance )



An automobile is one of the things that you invest money on. However, it is interesting to note that the depreciation value of your car can instantly go down to nearly twenty percent such that the book value of the automobile may no longer be the original price.

At times, you may find yourself on the losing end of your vehicle insurance quote because the common practice of policy issuers is to charge the book value of your car rather than the actual amount desired. With this scenario, you may find yourself paying the insurance of a useless car. In this light, gap insurance can be an excellent alternative.

What is a Gap Insurance?

In industry parlance, gap insurance is one that allows you to settle the monthly amortization of your vehicle insurance quote before it is valued by the insurance company. While firms generally put a high value on motor insurnace, you can obtain a much cheaper policy through the Internet. Gap insurance is getting all the attention because the value of automobiles is on an upward path.

The coverage of a typical gap insurance package may vary depending on the issuing firm. This may include accidents and theft so there is a need for you to compare the features of the package before getting gap insurance. In addition, while some companies may offer gap insurance, it is applicable for new cars on financing schemes.

Moreover, majority of the lenders engaged in car financing demand comprehensive policy but not a gap insurance. Consequently, you would need to pay for the cost of depreciation if your vehicle becomes completely loss and gap insurance is not included in your vehicle insurance quote.

Looking At the Cost

There are cases wherein car dealers provide gap insurance however this will entail an increased rate on your premium. So before you make any decision to purchase additional policy, make sure that your existing vehicle insurance quote no longer provides coverage.

There are cases when gap insurance is already bundled with the premium so you need to verify it with your provider. If no provision is offered, then you can apply for one at a cheaper cost. Some insurance firms do not provide gap insurance so you can apply for it prior to getting a car insurance from your dealer because there is a possibility that the dealer’s rate will be more expensive.


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