Augusta
VIP Contributor
Before taking out the Gap insurance coverage you would need to know what it covers or not. This will help you ascertain if it will be the right fit for your auto vehicle needs
Most gap insurance company give coverage to the insured for their total loan balance which may include the negative equity that must have been rolled into the new car loan. This means that if one trade in a car on which one is owing more than it’s worth, then the negative equity herein will be rolled into the new loan.
The truth as already stated is that not every gap insurance policies will cover a negative equity, What this suggests Is that one should buy a policy that will rolled negative equity into a new car loan.
So What are the areas not covered by Gap Insurance
Gap insurance does cover for car insurance deductible. This will be paid by the insured.
Gap insurance never covers for an insured overdue payments or even late fees on your car loan or lease
Security deposits
No coverage for any extended warranties
Gap insurance don't cover for any carry-over balances from past loans or leases
Same Lease penalties for high mileage,this will be handled by the insured not insurance company.
A down payment for a new car and car charges for credit insurance connected to the loan will not be covered by Gap insurance.
Most gap insurance company give coverage to the insured for their total loan balance which may include the negative equity that must have been rolled into the new car loan. This means that if one trade in a car on which one is owing more than it’s worth, then the negative equity herein will be rolled into the new loan.
The truth as already stated is that not every gap insurance policies will cover a negative equity, What this suggests Is that one should buy a policy that will rolled negative equity into a new car loan.
So What are the areas not covered by Gap Insurance
Gap insurance does cover for car insurance deductible. This will be paid by the insured.
Gap insurance never covers for an insured overdue payments or even late fees on your car loan or lease
Security deposits
No coverage for any extended warranties
Gap insurance don't cover for any carry-over balances from past loans or leases
Same Lease penalties for high mileage,this will be handled by the insured not insurance company.
A down payment for a new car and car charges for credit insurance connected to the loan will not be covered by Gap insurance.
