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Why do you
need Auto Gap Insurance? Your car's value (new or used) drops the minute you drive it off the
lot and continues deprecation daily. Unfortunately, if someone steals or hits your car
five minutes after you drive off the
lot,
your auto insurance only covers
the actual cash value as determined by the dealers blue book.
At this point, there's a good chance the insurance check isn't going to
be enough to pay off your
outstanding lease (or loan) balance. Your car depreciates about 20 percent
as soon as you drive it off the lot, and it continues to depreciate
dramatically for the first two or three years. (See
the Auto Deprecation Calculator) If your car were to be stolen
or totaled during this time, insurance would pay you the actual cash value
(ACV) of your car. Your loan amount could be significantly more, however,
leaving you on the hook for the difference. GAP insurance was created for just such a situation.
Auto Financing terms are longer and often allow little or no money down, which means that
cars are quickly losing their value in relation to the loan.
This loss in value, or GAP
between the true value and what is owed on the vehicle can be very costly.
The
dramatic loss of your car's value, as soon as you drive it off the dealer's lot,
can put
an undue strain on your bank account if your car is totaled (or stolen!).
Auto gap insurance provides protection for you when a "gap"
exists
between the actual value of their vehicle and the amount of money
owed to the bank
or leasing company.
9 out of 10 people have not heard of auto gap insurance:
50% of the time the Insurance Company will not pay enough to satisfy the loan or lease balance on totaled or stolen cars
One out of every three Americans
suffers the total loss of a vehicle at some point during their lifetime.
One out of every nineteen drivers will
have a total loss of a new car (under two years old) due to collision
One in every twenty drivers will
experience an un-recovered theft.
Are you at risk?
Answer these 7 questions and determine if you might be one of the
millions across the U.S. who would have to pay out of pocket. click here
Special Notice:
The purchase of GAP is voluntary and cannot be required as a condition of loan approval.
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