Auto Gap Insurance - Don't Drive Off the Car Lot Without It

Are you looking for some inside information on Auto Car Insurance? Here's an up-to-date report from Auto Car Insurance experts who should know.

Auto gap insurance is a term not many people are familiar with. But if you're shopping for a new or almost new car you should make sure you have it to protect yourself financially. First let me quickly explain what this insurance is, how it can help you and how to avoid getting slapped by it.

First, when your shopping for the best new car insurance rate, make sure you add in the cost of gap insurance, especially if you have an expensive car. Auto gap insurance is also a must have if you plan to lease a car. It covers you where your primary insurance doesn't to give you the most simple explanation possible.

Now that we've covered those aspects of Auto Car Insurance, let's turn to some of the other factors that need to be considered.

It covers you for the difference or auto insurance gap between what your primary insurance coverage will pay and what you owe the bank or finance company in case of a total loss. For example, if someone steals your car and it's never recovered or if it's totaled, etc.

Because of car depreciation, for example the average new auto depreciates 10-20% the minute you drive it off the lot, gap insurance becomes necessary in many cases. Why? Because often you primary insurance will pay only what the car is worth at the time of the accident. Auto gap insurance will make up the amount should you owe more than the car is worth. That's why buying gap insurance is wise choice if you lease a car or truck or put down a small down payment.

Although it's usually required if you lease a vehicle, you should still shop around for the best price. You may find you could save a significant amount of money by comparison shopping. Check your primary insurance policy if it's written to pay the full amount of your car loan you don't need auto gap insurance. Be sure to check with your auto insurance agent.

This article's coverage of the information is as complete as it can be today. But you should always leave open the possibility that future research could uncover new facts.