| If you're familiar with the concept of "fair | | | | car's real value and the amount of your loan |
| market value," you'll know that as soon as | | | | that remains is more approximately equal.The |
| your new vehicle leaves the car lot, it | | | | good thing about gap insurance is how |
| depreciates in value by up to twenty percent. | | | | reasonable it is to purchase. At only a few |
| What you may not know is that if your new car | | | | dollars a month, it can fit the budget of |
| gets stolen or totaled within the first year | | | | most new car owners. What stops people from |
| that you have it, you're still going to end | | | | purchasing gap insurance isn't usually the |
| up paying a large portion of your loan, even | | | | cost of the coverage, but their relative |
| if you have comprehensive auto insurance. | | | | ignorance that it even exists. Loan companies |
| Auto "Gap" insurance, originally known as | | | | won't tell you about it, nor will car |
| "guaranteed asset protection" insurance, is | | | | dealers. They are guaranteed their money |
| meant to insure the difference between what | | | | regardless. And if they do offer gap |
| your insurance company says the car is worth | | | | insurance at the time that you buy your car, |
| (the fair market value) and how much you owe | | | | you can often find a better rate on your |
| on it..There are many situations that | | | | own.One of the reasons car buyers aren't |
| encourage the purchase of auto gap insurance. | | | | familiar with gap insurance is that it isn't |
| It is often a required addition to a lease | | | | offered in all states. In fact, it isn't even |
| contract, as the leasing company must be | | | | offered by some insurance companies. |
| guaranteed compensation should their vehicle | | | | Connecticut, Louisiana, Maine, Nebraska, New |
| be stolen or involved in an accident. You'll | | | | Hampshire, New Mexico, New York, Virginia and |
| also want to have it if you're getting a new | | | | Washington are states that don't offer gap |
| vehicle, especially one that is at risk for | | | | insurance, although drivers in those states |
| being stolen. Coincidentally, the most | | | | can petition the state Insurance department |
| popular automobiles in a thief's eyes are | | | | in order to encourage lawmakers to make it |
| also the most popular models sold. If thieves | | | | available. Similarly, those who now have an |
| steal your vehicle, even if it's the night | | | | auto policy through a company that doesn't |
| you get it, your insurance will only pay for | | | | offer gap coverage can request that their |
| the value of the car, and you'll be left | | | | carrier add gap insurance as an option.If you |
| paying on a loan that you're not benefiting | | | | own an older vehicle and don't anticipate |
| from.Although many dealers will claim that | | | | buying a new one anytime soon, it is probable |
| you can only purchase gap insurance through | | | | that you will never need to know what gap |
| them at the time of the purchase, in fact you | | | | insurance . But for those of you who are ever |
| can enroll in gap insurance anytime within | | | | planning to buy a new vehicle that might |
| the first twelve months of your purchase. Of | | | | require financing, gap insurance can be an |
| course, the longer you wait to enroll, the | | | | indispensable--and affordable--alternative to |
| less cause you have for it. After the first | | | | paying out-of-pocket for an accident or theft |
| few years that you've owned your car, you | | | | that isn't your fault. |
| will no longer need gap insurance, since the | | | | |