Some insurance policies auto-include the gap insurance. You will have to look at the hard copy of the policy in order to find it. or you can also contact your insurance adjuster.
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How to find out if you have gap insurance?
It is possible to buy gap insurance on its own. But in most of the policies, the gap coverage is an add-on benefit. Hene the insurance company add gap insurance into your policy. They will not tell you, especially that they have included gap insurance in your play. That is something you will have to find out for yourself. So here is the easy method for how you know if you have gap insurance.
What is gap insurance?
If you buy a car or lease or loan a car. And the value of the car is $55000 and you owe $50000 to the car company. If somehow that car is totaled in an accident, then the gap coverage will provide you with the $5000. We can say that the gap insurance provides the in-between money of the car’s worth and the car loan that you still owe.
This insurance works best for the leased car. If your leased car is totaled or stolen then this insurance will provide the best benefits.
How to know if you have gap insurance?
You have to look into your existing car insurance policy to look for the gap insurance. You can also contact your insurer if you are unable to find it. But you will have to send the policy hard copy to the insurance adjuster only then he can tell you about this.
You will pay the gap insurance premium until your car loan value is below the car’s original worth.
Your auto insurance policy should include gap insurance as part of the coverage. As a matter of fact, if you still have a loan on you, it is very important to do this. Of course, This will help you in the case of a total loss of the car.
Whether it is leasing or financing a car.
Things that are not included in the gap insurance
Just like any other usual insurance policy. Gap insurance also has some limitations. Here are the things that are not covered under the gap insurance coverage.
- If you are using the vehicle for commercial purposes.
- If the insurance adjuster declines the claim
- In case of unfulfilled premiums
- If you are filling out the claim for the second time.
- If you have withdrawn the policy before the maturation period
- When the car dealership is cancelling because of any reason.
All these reasons for the claim are not covered under the gap insurance. So check these before filing a claim. Otherwise, your claim will reject instantly.
Time to receive the gap claim
A gap insurance claim is among the fastest claim that clear. And the more soon claim clear the more soon you will receive the money. The maximum period to receive the gap insurance claim is six weeks. No insurance company takes more than this time. If all your documents are clear then you can also receive the money within one week. But for this, all your bank account details and paper should be up to date. So you should always check the necessary details before filing the claim.
Different types of necessary car insurance
There are a few insurances that are necessary for your car. If you live in a state where car accident is very common then you should have the following insurance.
- Auto insurance- this insurance will cover the vehicle damage along with the third-party damage.
- Collision insurance- collision coverage is only, limited to the vehicle. Hence it will cover only the vehicle damage.
- Gap insurance- if you have a leased vehicle or have a loan on your vehicle then this insurance is best.
Hence these three insurance plays a very important role in saving your money in case of a car accident. Because car repairing costs thousands of dollars.
Where to buy gap insurance?
You can buy gap insurance from your existing insurance company. Or you can ask the insurance adjuster. Before buying the insurance compare prices of different companies. Because gap insurance has the most difference in prices. There are also options for gap insurance when you purchase a used vehicle. The gap insurance is made especially for the leased vehicle only. But seeing the other benefits people purchase this for their original vehicle which is under the loan.
And to know if you already have gap insurance or not you should look into the policy. It will mention in the policy.
