It has been a great week for you. For one week, you have been driving around in the newest (at least, to your knowledge) car on the block. You are the envy of everyone! The driver of the car next to you in the street; the parking attendant as he checks-in your vehicle; heck, even your boss is impressed with your shiny new set of wheels. It is great to be at the top of food chain even if you know that after a while, that new car smell will fade away. However, just as you turn into your street, life throws you a curveball. SMASH! An SUV has just plowed into you. No one has gotten hurt miraculously but you feel as if someone has in fact crippled you after you survey the damage to your car. It's horrible! And it was brand new! The worst part is you are at dangerous point in time with your loan where you owe more than the car is now worth. What to do then? You need auto GAP coverage. Here is how to buy it:
- What auto GAP coverage is. First of all, GAP stands for Guaranteed Auto Protection. GAP coverage is actually a little-known type of insurance that proves to be invaluable especially for new car owners. It helps protect you from what they call "negative" or "upside-down" equity. See, when a car is newly-bought, the moment it gets driven off the lot, the value goes down to a point where the amount yet unpaid on the car loan is actually more than the value of the car itself. If the car were totaled, the owner of the car would still have to pay a certain sum even if his insurance covers the entire cost of the wrecked car since the values are not the same. By purchasing GAP coverage, you guard against this potentially unfair loophole and are guaranteed the right to purchase a new car without having to pay extra.
- Buying auto GAP coverage. In most cases, you can readily get GAP coverage when you purchase the car. It has become standard practice to offer or include it with the car sale and is actually relatively cheap. Most car owners probably already have it.
- Where to get GAP. Even if you do not have GAP insurance already, you can easily purchase it from online insurance providers or ask your current auto insurance provider about their GAP coverage. Such providers include CarInsuranceRates.com, BB&T Online, Auto Protection and Advantage Auto Quotes. As mentioned above, some dealers such as Acura, also provide it right away. There are many places you can buy from so it is very easy to acquire GAP insurance. And, at the same time, it is relatively low-cost.
You never want to let an unforeseen and poorly timed accident ruin your day just because of some weird market imbalance. Investing in auto GAP coverage is a good idea and is playing it safe. Check on yours or ask how you can purchase a plan today.