Gap insurance is a kind of car insurance that car owners buy to protect them from possible losses that occur when the money gotten as compensation for a total loss doesn’t completely cover the amount the insures owes in the agreement. The situations that warrant gap insurance include when you bought a car and made little or no down payment, you bought a car that had bad resale value, you traded in an upside-down car, you took a long-term car loan, etc. Here are tips you should consider when buying a gap insurance policy:
Ensure you aren’t covered already and ask your car dealer
Before buying gap insurance, speak with your insurer to know if you are not covered already. You can check the insurance policy yourself but ensure you don’t miss the coverage. You may already have it and you don’t know. Buying other coverage can be a crime in some states and could make your auto policy ineffective. Only buy the insurance for something that is not already covered. Also, most car dealers offer gap insurance policies. Though it is not the least expensive because the dealers value their cars higher than the insurance company does. If you go through your dealer, you will find that you are covered with higher limits. Ensure you are not going against your state in what you do. It is considered fraudulent if you get a gap coverage beyond the value of your car. Most times, you are limited to the number of coverages you can have, where you can have it, and how you can file the claim. In selecting a company to provide Gap insurance for you, it is important to read reviews about different companies that offer gap insurance on uk.collected.reviews before selecting the company that promises the best services at an affordable price. If you don’t know any gap insurance company or have any in mind, you could start by reading InsuretheGap reviews to know if their gap insurance policy is right for you.
Avoid insurance with market value clauses and choose one that pays in cash
You have to be careful when choosing gap insurance with market value clauses. Gap insurance that has a market value clause is engineered to pay you less money than a gaps insurance policy that doesn’t have them. Also, go for gap insurance policies that pay out in cash to the policyholders. Gap insurance policies that do not pay out in cash force the holders to get their next car from the insurance providers or use a motor dealer of the insurer’s choice. Some insurers even go as far as reducing your payout if you don’t cooperate with their insurance payout rules. Always choose a policy that leaves you free to use your funds as you like.
Choose A-rated insurers and read online reviews
If you want to get a good gap insurance policy, buy from A-rated insurers. If you buy from an insurer that is not rated, you have put yourself at risk of being left without cover at a time when you cannot get over from another insurance provider. Also, go for a gap insurance policy that offers a money-back guarantee. Some companies offer 14 days, some 21 days while some go as far as 30 days. Choose policies that will give you enough time to reconsider if you want to without being penalized and hindered from getting all your money refunded. If you are unsure about which insurer to buy from, read online reviews. You will be able to draw on many people’s experiences and make something out of it for yourself.