Do I Really Need Gap Coverage For My New Ride?
When in the market for a new car, there are wide ranges of planning measures you must consider before making any final decisions. The color, make, model, safety features, and sound system are all important to you, but it is essential that you consider the insurance implications of your purchase. We have all heard the saying that a car losses its value the second it is driven off of the lot, but what does this actually mean to us?
When you purchase a brand new car, it is not as valuable as the price you pay once you leave the dealership. Therefore, there is often a gap in coverage. That is where gap insurance comes in. Gap coverage provides you with the protection you need when your auto insurance policy falls short.
Let us play out an unfortunately common scenario: You have just left the dealership in your beautiful new Lexus convertible and turn onto the highway, when a truck rear-ends you because the beauty of your new ride distracts them. You already updated your auto insurance policy, but your collision coverage only provides you with fair market value coverage. Now, you are not only left without a ride since your car was totaled in the accident, but you are also left with the difference between what your insurer pays and what you still owe on your car loan.
In situations like these, gap insurance covers the difference. We all hope we do not need gap insurance, but you can confidently enjoy your new ride knowing that you do have it if necessary.
Contact Weaver & Associates Inc. in Arcadia for all of your California auto insurance needs. Please do not hesitate to give us a call if you are in the market for a new car. We can help you plan accordingly so there are no surprises once it comes time to consider the insurance implications of your purchase.
