Do you know that as soon as your new car leaves the lot, it actually depreciates about twenty percent in value? Also, if unfortunately your new car gets totaled or stolen within a year of its purchase, you will still have to pay a very large portion of your car loan even if you have auto insurance that covered you comprehensively. This is where the Auto GAP insurance comes. GAP Insurance is also known Guaranteed Asset Protection insurance and it protects the difference between the insurance company’s fair market value of the car and the amount you owe on it.
Gap insurance becomes almost necessary if you are leasing your car or you owe more than what it is actually worth. Now how do you go about finding the best gap insurance for your car?
You can purchase gap insurance through your lease company or your car dealership; however remember that this way will be very expensive, in fact most expensive of all options for a policy that is readily inexpensive.
You can check with your insurance company to see if they offer you gap insurance and if they can add it to your currently policy. If that’s not possible then you can search for reliable gap insurance through an insurance comparison website which allows you to get quotes from different insurance companies. Once you have the quotes shortlisted, you can then compare them and opt for the cheapest one available to you.
But wait, that’s not it.
Although a company might be offering you low rates for gap insurance on the forefront, there might be a number of stipulations that would increase your premium. It is therefore important that you check out the company in detail. Look for reviews or better yet talk to people who have already purchased gap insurance from that particular company. Once you do that, you’ll be in a more informed state to make a decision.
Often insurance companies that are not licensed or just mentioned online on various portals can be a scam. You need to check for authenticity for the websites where you compare quotes and the insurance company that you are considering to buy insurance from. It is necessary for your safety and your hard earned money’s protection.
Often finding the cheapest rate isn’t enough. You need to be certain of the company’s reputation and its credibility. You wouldn’t want to end up in a scam or waste your hard earned money and for that reason it is extremely important that you find out the best gap insurance company.
So remember, first of all you should check for insurance rates on an insurance comparison website that has its license and credibility. Next compare quotes from the companies and move on to check for reviews and credibility of the company you are considering. Remember it’s good to be safe than sorry therefore it is important to not only check but cross check all the choices that you make.