Auto Coverage: Gap Insurance Quote Comparison among Providers

This gap insurance quote comparison will help you find the best gap protection to help protect your investment. Gap insurance is an important policy that can save you thousands of dollars in the event your vehicle is declared a total loss by an insurance company. For example, if you have a remaining balance of $20,000 on your vehicle and it is totaled in an accident, your insurance company's claims department will assess an actual cash value for your totaled vehicle. This amount will be relatively close to the blue book value, as calculated by Kelley Blue Book. Say, for example, that your totaled car's actual cash value is $14,000. There is a $6,000 difference between your loan payoff amount and the amount the insurance will pay your lender. If your vehicle is totaled without gap insurance, you will have a $6,000 balance remaining on your auto loan that must be paid off quickly. A gap insurance policy would pay the remaining balance of $6,000 to settle your auto loan in full. While no driver hopes to use their gap insurance policy, having a gap policy or endorsement will save you headaches and money in the unfortunate event your vehicle is totaled. Below are three popular types of providers who offer gap insurance that can save you thousands.

National Gap Insurance

National Gap Insurance offers policies online via its website for customers in most states. In some states, National Gap Insurance offers its gap insurance through independent insurance agents. In any case, National Gap Insurance provides an excellent value by selling gap insurance for $349 for a term of up to 72 months. In order to qualify for gap insurance through National, the vehicle must be less than 8 years old, have a clean title and be financed by a contract no longer than 72 months in length. For clients who require 84 month coverage, National offers a comparable policy that will cover a loan term of up to 84 months for only $399. All policies cover interest payments in your balance, provided that your auto loan's APR is 12.5% or less.

Gap Endorsements

Gap insurance endorsements are an addition to your current auto policy through an insurer like State Farm, Geico or Progressive. Instead of issuing a separate policy for gap insurance, a gap endorsement is simply another line item added to your policy. In fact, if you check over your current policy, you may find that your policy already includes a gap endorsement that you didn't know about. Adding a gap endorsement will vary in cost based on insurer and the type of vehicle you purchase. Contact your agent or customer service department for a gap endorsement price quote.

Dealership Policies

Gap insurance policies offered by dealerships are assigned to third party insurance providers. While policies like those offered by the JM&A Group are very thorough and cover all types of loans, they may be prohibitively expensive. While such a policy may cost the dealership as little as $200, the finance and insurance manager will offer you the dealership's gap insurance for between $500 and $1000, depending on the maximum your lender will allow them to charge or the maximum that is allowed by state law. Unless you can get the coverage for less than $500, it's best to look elsewhere.

Related Questions and Answers

A good auto body detailing can add considerable interest in your vehicle as a trade-in when you first drive into the dealership. However, you should be aware that once your car is on the dealership's lot, an appraiser will be taking a close look at your vehicle. It is possible that if the dealer sees a great Simonize coat or freshly cleaned interior, they may think you are hiding something. It may actually cost you a bit so that your vehicle's value may diminish more. The truth of the matter is, a good detailing makes you feel good, but it doesn't help the ultimate value of the vehicle.

In the broadest of terms, yes, if your car has a cracked block and leaking antifreeze like it has been shot through the block, and if the electrics are fried, then the car's salvage value will go down to a certain extent. It is at this point that the vehicle becomes more valuable as a parts-only vehicle so that the salvage yard can sell the doors, hood, trunklid, seats, tires, control rack, idler arm assembly, transaxle and more, and will receive far more value for the parts than for the in tact car.