New Car Gap Insurance: How does it work?

New Car Gap Insurance: How does it work?

It’s important to have Jacksonville auto insurance on any car that you own. It will ensure that you have the protection in the event of a car crash or something else. If you decide to buy a new car, you want added protection in the form of new car gap insurance.

What is gap insurance?

Gap insurance is a form of auto insurance that you can purchase directly from the dealership or from your insurance company.

The gap insurance is designed to pay the difference between the value of the car and what you owe on the car. Your new car loses value the moment you drive it off the lot. If you owe $18,000 on a car and you total your car, the insurance company might only value the car at $15,000. This means that there would be a $3,000 variance that you are responsible for.

With gap insurance, the insurance company pays the variance so that you don’t have to. It can add up to a significant amount of money should something happen. It’s why so many people decide to get new car gap insurance as part of their Jacksonville auto insurance policy.

How New Car Gap Insurance Can Help You

You never know when you’re going to get into a car accident. You could be the safest driver on the road and still get into an accident. This is because you never know what other drivers are going to do. If someone runs a red light and barrels into the side of you, it’s important to have the right coverage on all levels.

Your Jacksonville auto insurance coverage will take care of repairs to your car. Depending on fault and coverage, you will also have medical bills covered. However, if the car is totaled, the only way to make sure you aren’t left owing something on the car is if you opt for gap insurance.

The cost of gap insurance is generally affordable. It’s based on the car you buy, your driving history, as well as your zip code. You can get quotes from different insurance companies to determine how much gap insurance will cost you. When you buy a new car, the dealership might also offer you the gap insurance. Before you accept what they have to offer, do the research on your own.

You can choose to work with an independent insurance agent. They will do the research on your behalf to get quotes from several companies. It’s then easier to get the coverage you need at a premium that you can afford.