Gap Insurance in Atlanta, GA
Although auto insurance may be one of the most commonly purchased types of coverage, it can also be a complicated and confusing subject. There are many endorsements, additions and enhancements that may be necessary beyond a standard auto policy to ensure adequate coverage for both your vehicle and the financial investment it represents. If you have bought or leased a vehicle, or plan to do so, gap insurance is a particularly crucial type of coverage to consider.
For almost 30 years, the insurance experts at Peachstate Insurance have used their extensive knowledge and experience to help vehicle owners throughout 27 Georgia communities understand gap insurance.
What Is Gap Insurance?
As soon as you drive your newly purchased or leased vehicle off the lot, its value begins to depreciate. Within a very short span of time, your vehicle’s actual cash value may be significantly lower than the amount that you owe on it. As such, in the event of a total loss via accident or theft, a standard auto policy that only pays out for a car’s actual cash value will not be sufficient for recouping your losses. Fortunately, as its name may suggest, gap insurance bridges this difference.
What Is the Benefit of Gap Insurance?
It’s critical to understand how quickly the actual cash value of your car can decrease. If your car is totaled in an accident or stolen, standard auto policies may only render financial assistance to the point of the estimated cash value at the time of the loss. However, given the aforementioned depreciation, it’s likely that you will still owe more on your lease or loan. Without adequate gap insurance, you will need to pay this discrepancy out of your own pocket, while also likely having to find a way to finance or purchase a new vehicle.
While this type of coverage should be strongly considered by all vehicle owners, it may be particularly advisable if the following apply to you:
- Your down payment was less than 20% of the car’s total price.
- You plan to finance the car for at least five years.
- You’ve purchased a vehicle that depreciates in value more quickly than the average car.
- You have negative equity which has rolled over from a previous loan.
In addition, if you are leasing a vehicle, it’s likely that your lender will require you to purchase gap insurance.
Get the Right Coverage
Buying or leasing a new vehicle is a significant investment regardless of make, model or your financial situation. Further, given the rapidity at which automobiles lose value, these purchases may often carry substantial risk. Without gap insurance, a single slip of a tire or lapse in attention could leave you with devastating financial losses.
Fortunately, the agents at Peachstate Insurance can help protect your vehicle and your investment with an optimal gap insurance plan. Contact us
today to get started.