Tag Archives: Gap insurance

What Is Gap Insurance and Should I Get It?

Gap-Insurance-Miami-Lakes-Automall

In the state of Florida, it’s illegal to drive without auto insurance. Of course, the most important thing when you’re dealing with an accident is to know you’re covered and will have enough money to pay off any existing payments owed.

Gap insurance is used together with collision coverage or comprehensive coverage. If you’re leasing or financing a new car, many lenders require you to have collision and comprehensive coverage on your car insurance policy until your car is paid off. Gap insurance is available to help when your vehicle has been totaled in an accident and your totaled vehicle has to be paid off.

An Example of When You’ll Need Gap Insurance

Let’s say, for example, you were just in an accident and your vehicle has been totaled and you still owe $15,000 on the loan for your vehicle. Your insurance company will reimburse you for the value of the vehicle at the time of the accident, so say that’s $10,000, you are still responsible for paying the remaining $5,000 of the loan, and that’s where gap insurance comes in. Gap insurance covers the remaining loan balance after the insurance company has paid the insurer for the value of their vehicle.

This does not cover any funds that you’ll need for a new vehicle. The money you would receive to pay off the totaled car is only for that and never goes over that amount. If you were looking to have money for your next vehicle, the option of new car replacement coverage is an option to add to your insurance plan. Those new car coverage plans can be coupled together with certain insurance plans that will include gap coverage.

How Do I Know If I Need Gap Insurance?

Ask these questions if you’re not sure to get gap insurance: Do you owe more money to pay off your loan than your vehicle is worth? Can you afford to pay out the difference today if your vehicle is a total loss? These are the factors that should make up your decision to go with gap insurance. If your auto loan is more than 60 months or you’re currently leasing your car, you might have gap coverage included.

When Can Gap Insurance Be Applied?

Gap insurance can be applied if you’re vehicle is stolen or totaled, which the latter is a decision entirely on your insurance and can’t be determined any other way. If you have more questions about whether or not you want to include gap insurance with a vehicle you plan on buying or leasing from us, stop on by for a longer conversation.

Where To Go For New Vehicles

Our lineup of vehicles will impress you and we offer test drives so you can enjoy finding out the right fit for you! Visit Miami Lakes Automall and our professional team can answer your questions and help with any concerns you may have. Our finance team is able to work with you to determine a great deal and provide answers for you concerning coverage.

To find the latest 2018 Mitsubishi models. Our professional and courteous staff will ensure you have a great experience and want to return for any maintenance or repair needs with our servicing department down the line. We hope you join us for a test drive, we’re open seven days a week for your convenience.