Ijaw Dictionary Online

How Automobiles Work

Hi this is Jeremy from Shine Insurance and we’re here to talk about gap
coverage (MUSIC) Gap Coverage is really for folks who are
buying new cars or cars that are close to new. Oftentimes if you look at your insurance
policy you’ll see it called Auto Loan-Lease coverage. This is
coverage for the gap between what you would get
paid in a total loss on your vehicle and what you have in your loan. So let’s
imagine you purchased a thirty thousand dollar brand new car. You drove that car off the lot and six
months later you got into an accident that totalled the
vehicle. You may have a loan that’s worth more than the value of your
car. So let’s say when the adjuster comes out and and gives you the total value of
your vehicle they say it’s worth twenty two thousand dollars. Your loan is still for twenty nine
thousand dollars. You have a seven thousand dollar gap
between the check that the insurance company is going to write you and what you still owe on
your car. If you don’t have gap coverage, or Auto Loan-Lease coverage, you’ll have to
pay that seven thousand dollars out of your pocket. If you have Gap coverage the insurance
company will write a check for that seven thousand dollars on top of what they paid out on your
totaled vehicle. (APPLAUSE) So wondering what you should do? Well, I’d go to KBB.com and find out the trade in value on your
vehicle. Not the retail value, the trade in value.
That’s going to get you a ballpark idea of what an adjuster would give you if your
car was totaled. Take that number and then look at the
loan you have. See if they match each other. If your loan is less than that trade in
value, you may be OK without that gap coverage. if your loan is much more than that
trade in value then gap coverage is something you should consider. Have more questions about insurance? We’d love to have you at shineinsurance.com Check out our blog, sign up for our e-newsletter, and join us in
any of the forms that we come out on. Hope we brought you a
little bit a piece of mind and change the way you feel about insurance Until the next time have a
wonderful day!

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