After you purchase your Chevy Impala, you need gap insurance to help protect your investment, especially if you chose a no- or low-money down loan. Gap insurance provides an important safeguard if your vehicle is totaled in an accident and you owe more than it's worth. Gap insurance coverage is relatively cheap and can save you thousands in the unfortunate event that your vehicle is totaled.
It is recommended that you carry gap insurance if you owe more than the fair market value of your vehicle. For example, if you have a balance of $18,000 on your Impala and the fair market value of your vehicle is $11,000, there is a $7,000 difference in value that must be made up to pay your loan off in the event of a total loss. If you don't have gap insurance, you will have to pay this amount on your own. If you do have gap insurance, the policy will pay the difference of $7,000. For pennies per day, gap insurance coverage provides peace of mind as your drive your vehicle. The following 4 tips can be used to get the best rate on gap insurance for your Chevy Impala.
- Get multiple quotes by using online tools like gap-insurance.com. You can find gap insurance for as little as $299 for coverage on a 72 month loan. This is a great price to pay for gap insurance, and it is likely going to be your cheapest option. However, be sure to read the gap insurance contact carefully to make sure that it will cover you properly in the event of a total loss.
- The dealership will offer gap insurance as you complete your financing paperwork. Dealerships buy their gap insurance policies from providers like JM&A Group for as little as $250 and resell them to retail customers for between $500 and $1,000. If a dealership offers you gap insurance for less than $500, it may be worth purchasing the policy directly from the dealership.
- Speak with your insurance company and see if it offers a gap endorsement on your current policy. If your insurance company offers gap coverage, it will simply be added as another line item on your insurance policy. This can be a cost-effective way to get gap insurance, and going with your insurance company will take little time to set up.
- Before you agree to a gap policy, read it carefully. Make sure that it covers the full amount financed and that it provides coverage for the entire length of your loan. For example, many gap insurers offer coverage through 72 months, but 84 month gap insurance coverage can be difficult to find because of the increased risk.
As you finalize your gap insurance policy, remember to be flexible. After reviewing asking prices and the level of coverage offered by each company, determine which is the best all-around value for your situation. If the dealership offers a great price, take their coverage, but plan on shopping around to get the lowest gap insurance rate possible.