Gap insurance is a cost-effective policy that every owner of a car should at least consider, if not purchase, if you finance the vehicle. For example, if your car is in an accident and is completely totaled, the insurance company will put an amount of the value of your car. If that value is less than the amount that you still owe on your loan, then the gap insurance will cover it (the “gap” between the two amounts). If you owe a large amount on a vehicle or know that you would not be able to afford the gap amount if your car was in an accident, then gap insurance is a safe and cost-effective way to save yourself from a large financial burden.
It is well known that the second you drive a purchased car off a car lot its value drops dramatically. Unfortunately, your car loan value still stays the same as it was on the car lot. Whether your vehicle is totaled that second or a year from then, more than likely, you will still owe more on the car loan then what the insurance company will value it at. Have the peace of mind and rest assured that in the event of an accident your financial needs are taken care of with gap insurance.
Contact Hockley & O’Donnell Insurance Agency to have them assist you in finding the correct gap insurance policy that will meet your specific needs. We have insurance representatives that specialize in gap insurance and will find you the best rates available on the market and answer any questions that you may have about gap insurance.