LOS ANGELES, CA / ACCESSWIRE / July 18, 2019 / Compare-autoinsurance.org has launched a new blog post that explains who should purchase GAP car insurance.
For more info and free car insurance quotes, visit https://compare-autoinsurance.org/why-should-you-purchase-gap-insurance/
No one can legally drive on the roads of the US without having car insurance. On average, the American policyholder is paying $78 per month on car insurance. Drivers that lease or finance a vehicle will probably have to pay more on their insurance, because of GAP insurance. Guaranteed auto protection (GAP for short) insurance is a type of insurance that covers the difference between what a driver owes on the car and what the car is worth at the time of the loss.
Drivers that bought a new vehicle will need to purchase gap insurance in the following situations:
- The vehicle depreciates quickly. As soon as it’s taken out of the showroom, a car begins to lose value. No matter how well maintained a car is, after 3 years of driving that vehicle will worth around 40% of the original purchase price. In some cases, certain models will be worth less than 25% of the acquisition price after the same 3 yeas period.
- The driver took a long-term loan from the bank. Drivers that finance a new car for a period that is longer than 5 years, or they made a down payment that is less than 20% of the financed car value are advised to acquire GAP insurance. On long-term loans, the difference between what is own to the bank and the actual cash value of the vehicle will take longer to disappear.
- The car is driven a lot. If the owner or his family are driving the vehicle quite often, then the owner is strongly recommended to purchase GAP insurance. Experts recommend purchasing GAP insurance if the car is driven more than 15,000 miles per year.
- Leased vehicle. In this situation, the lender will probably ask for GAP insurance to be purchased. Even if GAP insurance is not included in the lease contract, it is a good idea to purchase this coverage, especially if the driver still owes a significant amount on the lease payment.
For additional info, money-saving tips and free car insurance quotes, visit https://compare-autoinsurance.org/
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“Drivers that finance a new vehicle are strongly recommended to purchase GAP insurance. By doing so, they can avoid paying money from their own pockets if the new car is stolen or totaled in an accident”,
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