FREE Auto Insurance Comparison
Secured with SHA-256 Encryption
Compare quotes from the top auto insurance companies and save!
When Gap Insurance Coverage Helps
Here are some examples to help you understand how and why gap insurance is something Florida drivers should have.
- You bought the car of your dreams – a brand new shiny red convertible perfect for cruising Ocean Drive in South Beach. You get your financing in place and make sure you have the insurance you think you need and drive off the car lot. The next morning when you go out to drive that new car down by the beach you find out someone else liked your car too – enough to steal it. When you go to settle your claim with your insurance company and the lender who issued the car loan you notice a discrepancy. What the auto insurance policy provider paid the bank was the car’s value as a used vehicle. You are still responsible to pay the bank the outstanding amount. The remaining balance in other words comes from your pocket.
- In an effort to drive a new car without the commitment of buying it, you opt to lease a new sporty car. You don’t want to be tied down to the same vehicle for more than three years at a time, which is why you go with a lease and get all the proper insurance for the leasing option, or so you think. Not long after taking it home, you wreck and total the car beyond repair. That’s when you find out the insurance you had didn’t cover what you thought. Though most of the car is paid by the auto insurance carrier, you get to pay the difference. Now you are paying for a car you don’t even have to drive.
In both of these examples, what could have come to the rescue is gap insurance Florida drivers could have used. Gap insurance does fill in the gaps where other types of car insurance policies lack coverage. While some consumers think they are saving money by leaving the gap insurance coverage off of their policy, they could end up spending a great deal more to make up for where the out of pocket expenses come in should an at fault collision occur.
Unless you have money put aside to cover the difference between the value of your car and the actual loan amount owed, you are taking a gamble by not having your gap coverage. It is as simple as typing in your zip code and getting the quotes for gap insurance Florida residents should have to prevent more problems.