There's only one thing worse than having no automobile insurance coverage, and that's having insufficient insurance coverage. Boiler-plate forms and insurance plans have created a situation where millions of Americans think they're insured for accidents, liabilities, and unforeseen events when - in fact - they are not. This is often the result of gaps in their auto insurance policies.
You'd be amazed at how many times clients come to us after experiencing an auto insurance nightmare with their former insurance carrier: they've been in an accident and found their policy doesn't cover the total value of their car while they still owe thousands of dollars to a lender or leasee.
Gap insurance is designed to cover the "gap" that may exist between what your car is worth at the time of the accident and the amount of money you owe to the car's lender or to pay off the outstanding lease amount. Failure to do so can leave you making monthly payments for a car you can no longer drive, own, or lease.
So, say for example your car is worth $13,000 but you still owe $18,000 to your lender. With a typical auto insurance policy, you may be left on the line for $5000. With a gap insurance policy, the insurance carrier will pay the remaining $5000, leaving you more able to purchase or lease a new car.
Do you need to check the fine print on your insurance policies? Contact us at CCW Insurance for more information regarding gap insurance.
Image Source: freedigitalphotos