New Vehicle Insurance Brandywine Delaware DE
Filed under: Auto Insurance Quotes, Auto Insurance Tips
Reader’s Question:
I just bought a new car. I hear from a friend that it’s important to add gap insurance especially when you just have a new car. What is gap insurance? Should I get it? I live in Brandywine, Delaware.
Rafael
Brandywine, DE
Congratulations on your new car.
To better explain what gap insurance is let me give you a scenario. Let’s say you just bought a new car for around $30,000. And for some misfortune event in your life, it’s totaled. Your insurance policy only covers the car’s current value which is let’s say $25,000 around that time. Now the big question is, where are you going to get that $5,000 gap? That is where the gap insurance comes in. When the amount that your insurance company pays fall short for what your still owe or need to pay on the loan (or lease, if you are leasing).
Following are things you need to consider to know if you need to get gap insurance:
- You rolled your debt from your last car to your present car loan;
- Your car is lease;
- You bought a new car but you didn’t pay for a down payment of at lest 20%;
- For more than four years, you are financing.
Also remember to check if the gap insurance is included in your lease or with your insurance policy. Ask your insurance agent in Brandywine, Delaware for more information and check the online resources for gap insurance to give you a clearer idea.
Tags: auto insurance, gap insurance