Gap Insurance – Back To Basics

Once you have insured your car, you are good to go. Right? The answer is no. You still need GAP insurance. What is GAP insurance? Let’s take an example. Suppose you have bought a car making a down payment. After a couple of months, you end up getting your car totaled or stolen. You will get payment from the insurance company based on the existing value of your car in the market. The actual price of the car won’t be considered. This type of insurance provides coverage in this type of scenario. Let’s know more.

Guaranteed Asset Protection (GAP)

The term GAP is short for guaranteed asset protection. This insurance policy includes your motorcycles as well as cars. It’s a good idea to apply for insurance should you consider a finance deal in order to buy a motorcycle or car. Once you have sold your car or have paid its price, you can get a refund. You may want to keep in mind that this policy is not an alternative to motor insurance. This is just a type of additional insurance that you can consider to protect your car.

The importance of GAP insurance

The price of vehicles doesn’t remain constant. So, the insurance company will figure out your payout keeping the current value of your vehicle in mind. Not everyone has to get insurance. GAP insurance won’t be a requirement if you got a loan to make payment for the car. You can do with the regular car insurance.

However, if you take out a loan for a car, we suggest that you give a go to GAP insurance. The reason is that if your car is totaled or damaged, the rest of payment won’t be on you. Aside from this, it will be the responsibility of the insurance provider to get you a replacement car in addition to alleviate the loan you got to buy the car.

Types of GAP insurance

Typically, your car dealership can help you with insurance. Apart from this, you can go to licensed brokers as well. According to many experts, getting insurance from reliable brokers is better than car dealerships. The reason is that car dealership will cost you more.

GAP insurance is of many types. Each provider has different policies and the prices of the policy are different based on the car and the dealer/broker.

It’s important to note that some insurance packages, such as finance insurance is there to help you get funds for buying a car. Besides, you can consider a lease insurance policy that helps you handle the fees and costs incurred as a result of damage to a leased car. Another type of insurance plan was created in order to fund your new car purchase. At times, your insurance provider adds to your insurance package.

Long story short, you may want to make sure that you know what a GAP insurance policy has to offer before you get it. You can ask the broker for more information.

Understanding the Auto Insurance Claims Process

If you own a car, truck, motorcycle or any other vehicle, you know you need related insurance. All is good as long as you pay your monthly premium and do not make a claim.

Then you are involved in an accident. What then?

For many auto insurance policyholders, the auto insurance claim process is very, very complicated. Here, we bring you the basics of understanding with the following oft-repeated questions.

How long does it generally take to process an auto insurance claim?

A: If the insurance company has all the facts, a settlement should be achieved fairly quickly. By providing much of the details involved in the collision, the policyholder him or herself will help get the process off the ground. Any insurance company worth its reputation will do its utmost to process the claim as efficiently as possible.

Why is the estimated cost of repairs less than the actual payment check?

A: This is because the auto policyholder must first pay out-of-pocket for the deductible. Only after this, is the remaining balance given through a check.

What is the reason for the auto lien holder to be placed on the insurance payment check?

A: Many states make this a requirement for the simple reason that the lien holder has an insurable interest in the repair work done on the vehicle. In order for the policyholder to get the funding for the repair, he or she must be in touch with the lien holder.

What is the meaning of Direction of Payment?

A: Most auto repair shops require you to sign a Direction of Payment form so that they have documented evidence that the insurance company has permission to pay them for the repair work they complete.

What is common practice of insurance companies in regard to rental cars during the time the insured car is in the shop for repairs?

A: Most times, an insurance company will supply a rental car if the insured car is inoperable and in for repairs.

What about towing costs?

A: Generally speaking, towing is a covered service provided by the auto insurance company following an accident.

What is the procedure if the insured incurs injury during an auto accident?

A: The policyholder should be in touch with the insurance company if he or she is injured. The claims person will inform the policyholder about the related medical care and treatments that are covered under the policy.

Cheap Comprehensive Car Insurance

Once of the important choices, you need to make when researching the right policy, is whether or not to add comprehensive insurance. This extended coverage is also referred to as “full cover insurance” and provides a greater level of vehicle protection. Let’s take a close up look at the definition first. Comprehensive insurance is coverage for damage that’s been inflicted to your vehicle that’s not connected to an automobile collision.

The things covered can be quite broad but also very rare in some instances. Here is a short list of the most common comprehensive claim occurrences.

* Vehicle Theft

One of the main reasons people buy this type of insurance is protecting the value of their car, in the event it is stolen. Automobile thefts are escalating and not just for expensive luxury cars. Take a look at the top 10 most stolen vehicle list, and you will see Honda Accords, Civics, and even the Toyota Camry. If you park your car on the street in an urban area, you should strongly consider adding full cover auto insurance on your policy.

* Glass Breakage

Have you ever cruised behind a dump or garbage truck only to have something come flying at your windshield at 60+ MPH? Probably so and for many people, it happens every year or two. This is yet another reason why comprehensive ins might make sense to you. Under this plan, if your windshield is busted, you can get it replaced. You will have to pay a deductible, though.

* Animal Damage

Believe it or not, thousands of automobiles get hit by animals each year, hard enough to cause vehicular damage. Even large dogs can strike a car and cause dents, not to mention a 600-pound deer. If you live in an area that has lots of wild animals, consider getting comprehensive protection.

* Weather Events

There are numerous weather related things that could inflict damage to your car. A flood might completely ruin your car’s electronic system, or a tornado might pick it up in the air and completely total it. Even a mild windstorm can cause heavy branches to fall and hit your vehicle, causing severe damage.

* Vandalism

Some people do nasty things, and this includes vandalizing other people’s private property. This can be tire damage, “keying” or even smashing your vehicle due to rage. This is why it’s always important to not only get enhanced insurance if you can afford it but always garage your car in a secured area.

Mandatory Comprehensive Auto Insurance

There are some situations where you may be required to get comprehensive ins. The main one is if you’re leasing or financing a car. Lenders need to protect the value of the loan amount they’ve invested, and they do this by making this enhanced coverage mandatory. Also, even if you pay for your car in full, if it is worth more than $25,000 you should probably get full cover ins.

Another fact worth noting is many insurers will not let you buy comprehensive insurance unless you first add collision onto your policy. These 2 types of coverage go together and provide excellent protection for almost anything that can happen on and off the road.

How to get Cheap Comprehensive Car Insurance

Although this type of insurance is more expensive than “bare-bone” liability plans, there are a few helpful tips that can bring your

costs down quite a bit. The first thing you should do is get a higher deductible. Many people think it should be low, like $250 or $500. Raise it to $1,000, and you can save about 10% or even more. Another tip is to bundle all your cars together and save another 5% to 10%.