Augusta
VIP Contributor
Before taking out a Gap insurance which is one part of the car insurance policies you need to understands how it works
When an auto car is totaled under the coverage of both the collision or comprehensive insurance, the maximum claim payout from your insurance provider will be the value of the car which was before the incident. So Gap insurance comes in to covers the difference between the value of the totaled car and what was owed.
This simply means that If one's vehicle gets stolen or totaled then one make a claim on either the collision or comprehensive insurance whichever policy was carried out. the auto insurance company will pays for the actual cash value of your vehicle apart from the deductible that will be paid by the insured
But If one is owing more on the loan or lease than the insurance provider have already paid then car, gap insurance will pay the difference.
So the bottom line is that If you don’t have gap insurance in place the difference as stated above will be paid by you. This is why most lenders or leasing companies request one to carry out gap insurance so that they deal less with car buyers that refuses to pay a loan or lease if their cars is either totaled or stolen.
When an auto car is totaled under the coverage of both the collision or comprehensive insurance, the maximum claim payout from your insurance provider will be the value of the car which was before the incident. So Gap insurance comes in to covers the difference between the value of the totaled car and what was owed.
This simply means that If one's vehicle gets stolen or totaled then one make a claim on either the collision or comprehensive insurance whichever policy was carried out. the auto insurance company will pays for the actual cash value of your vehicle apart from the deductible that will be paid by the insured
But If one is owing more on the loan or lease than the insurance provider have already paid then car, gap insurance will pay the difference.
So the bottom line is that If you don’t have gap insurance in place the difference as stated above will be paid by you. This is why most lenders or leasing companies request one to carry out gap insurance so that they deal less with car buyers that refuses to pay a loan or lease if their cars is either totaled or stolen.
