Are you one of the many individuals who views a gap insurance policy as an unnecessary expense? That is what many people say, until they need it! Gap insurance acts as guaranteed protection for your car when you need it most. If you have recently leased a vehicle, are financing a car for 60 months or more, have put less than a 20% down payment on the car, have negative equity from your last car purchase, drive more than 15,000 miles annually, or if you have purchased a vehicle with high depreciation rates in its history, you would benefit from a gap insurance policy.
You know how people say the moment you drive a car off the dealership lot it depreciates in value immediately? It is true! If you were to total your car in a devastating accident within a few months of purchasing your new car, your auto insurance would only reimburse you at current cash value. That means that you will be forced to pick up the tab on the remaining loan balance.
Gap insurance is a relatively inexpensive form of insurance that can yield a variety of benefits to the consumer. Despite popular belief, this form of insurance is very important for many individuals. For only an additional $20 – $40 annually, you can receive peace of mind knowing your car is protected from all possible perils. Imagine if your new car that you financed at $25,000 was totaled. Your auto insurance reimburses you with $18,000. Who pays the remaining loan balance? Unfortunately, if you do not have a gap insurance policy, it would come straight out of your pocket.
Contact Gant Insurance Agency in McKinney for all of your Texas auto insurance needs. We can help you determine whether a gap insurance policy is right for your particular needs. Your assets deserve a level of guaranteed security that our experienced team of professionals can provide.