When you purchase an auto insurance policy, most carriers will only insure the car for Actual Cash Value. Actual Cash Value is set by subtracting depreciated value from what the value of the vehicle was when new. Considering cars decline in value so quickly, a person may owe more money on their car than what the Actual Cash Value is. As a result, if the car owner totals their car, they end up owing the bank money on a car they can no longer drive.GAP Insurance is designed to pay the balance due to the bank after your auto policy pays out. When you purchase a vehicle, the car dealer will most likely try to sell you GAP insurance and include it on your car note. While this is convenient, you will find it can be quite expensive. Plus, you end up paying interest on the GAP insurance you purchase through the dealer as the premium is included in your note. Your insurance agent can offer GAP coverage for a much lower price and you won’t have to pay interest on your premiums.
Call us today at 1-800-949-3635 to learn more about gap coverage and other types of auto insurance or get a free Minneapolis auto insurance quote.
