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3 Reasons to Include Gap Coverage on Your Florida Auto Insurance Quotes

Trusted Choice® JD Insurance & Financial Group, Inc in Florida goes over the 3 Reasons to Include Gap Coverage on Florida Auto Insurance Quotes

By: Jon Djordjevic
Category: Insurance:Auto
: Insurance
Posted: Jan 18, 2011
Updated: Jan 18, 2011
Views: 158


There are few feelings as good as driving your new car off the lot for the first time. You can finally roll the windows down, blast your music, and see how it performs when you open it up on the open road. Although many business experts will tell you to opt for a pre-owned car because they depreciate in value less quickly, some find it hard to say ‘no’ to putting the first miles on the odometer. If you have purchased a new car, and took out a loan to purchase it, you should know that there are additional types of insurance coverage to consider.

In addition to uninsured motorist insurance and comprehensive collision insurance, you might also want to consider gap coverage for your vehicle. In case you’ve never heard of gap coverage, you should know that it is a special type of insurance designed to protect the investment that you’ve made in your new vehicle. In order to understand exactly how gap insurance coverage works, you have to imagine an unpleasant scenario: what would happen if you were in an accident in the first year or two of owning your car, and the insurance company declared your car to be totaled.

In the event that you totaled your car so soon after purchasing it, you might expect that your insurance company reimburse you the entire value of the car when you bought it, but this isn’t the case. Let’s say you took out a $20,000 loan to purchase your car. Although you will probably still owe around $18,000 on the loan at the time of the accident, there’s a good chance that the insurance company will decide that the car has a total value of far less, say, $14,500. Even though your car is completely destroyed, you would still be left holding the bag for over three thousand dollars when your insurance claim is paid.

If you typically buy new cars or lease cars for a certain number of years, you should know that gap insurance coverage can keep you from this costly scenario. If you purchase gap coverage, it will probably result in a higher insurance quote for you, no matter what company you use. The advantage, however, is that you will be sure to be reimbursed for the difference between what the insurance company is willing to pay, and what you still owe on the loan.


Jon Djordjevic recommends visiting this premier source for affordable Florida auto insurance quotes. Here you can compare instant auto quotes.

Visit this informative Florida auto insurance site today www.JDIFG.com.

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