A lot of car owners don’t really give a thought to what happens when and if their car gets totaled. A lot of people actually assume that their car insurance policy would cover everything for them but often this is not the case. People often find themselves in trouble when they find out that they have to pay a lot more than what they expected because the auto insurance company actually priced their car for less than its market value.
This is where gap insurance actually steps in. It is also known as totaled insurance because it covers the car owner comprehensively in case there is a collision. The sum difference between what the car owner actually owes to the bank and what the insurance company provides is covered by the gap insurance.
Now how can you be sure whether your gap insurance company will provide you with full coverage?
First of all know one thing, don’t ever buy any insurance without talking to the insurance company in detail and getting to know all there is to know. You need to be very sure of what you will be offered in your gap insurance policy. You need to clarify with the company what you will be offered and what type of losses would they cover depending on your policy. If you are leasing a car then you should know that companies often include the gap insurance in their contracts. You just need to confirm.
You should also know that the cost varies as well. Although a lot of car dealers actually offer coverage to their buyers but it is cheaper if you buy the policy through an insurance company. Talk to your company and perhaps they can include your gap insurance as a part of your total insurance premium as well.
It is important that you buy proper coverage from a financial institution and not an individual. Also make sure you have comprehensive coverage as well as collision coverage for your vehicle so that you know you are being properly covered through your insurance plan.
Always make sure you get quotes from a number of companies before you can finalize any one. Talk to the agents there and ask what you will be provided. Since you are buying your insurance policy you have a right to ask. Don’t hesitate. Unless you don’t ask you won’t know.
Know that your gap insurance will not cover car payments in case there is a financial hardship, a job loss, any disability or death. Also the gap insurance will not repair your vehicle at any cost. The value of your car or the balance of a loan in case you car gets repossessed is totally your concern not your insurance company’s.
You should know everything before you purchase your gap insurance. Make sure you ask because that’s the only way you’ll know what coverage your insurance company is offering you.