Gap insurance for cars

In the event that your insured car is added up to in an accident, or taken and unrecovered, your auto insurance may give you a repayment dependent on the car’s actual cash value (ACV), not what you pay for it. Since cars devalue rapidly, your settlement may not cover what you actually owe on your auto loan or lease. 

That could leave you with no car and a major bill to pay. Cross country's gap coverage can help dodge this miserable situation. 

What is gap insurance? 

Gap insurance is a discretionary, add-on car insurance coverage that can enable certain drivers to cover the "gap" between the amount they owe on their car  and the car’s actual cash value (ACV) in case of an accident. A car’s actual cash value is the car’s monetary value at the hour of the accident, not the car’s original price. 

What does gap insurance cover? 

The essential idea driving gap insurance is sufficiently simple to understand – but what precisely does it cover? Gap insurance coverage is very flexible, however know that it just covers harm to your vehicle, not other property or real wounds coming about because of a accident. Here are a couple of regular inquiries identified with gap insurance coverage. 

Does gap insurance cover theft? 

Truly, gap insurance may cover robbery in the occasion your car is taken and unrecovered. 

Does gap insurance cover deductible costs? 

No. Indeed, even in case of an accident covered by your gap insurance policy, you would at present need to pay your deductible. As such, if the "gap" repayment amount is $4,000 and your deductible is $500, your complete repayment amount would be $3,500. 

Does gap insurance cover engine failure?

No. gap insurance is just utilized in case of an all total loss from a covered accident, not for mechanical fixes. 

Does gap insurance cover death?

No. gap insurance is simply relevant to vehicle misfortunes and doesn't cover real wounds, clinical costs, lost wages or funeral costs. 

Does gap insurance cover negative equity? 

Truly. Negative value is another term for the gap between what you owe on your auto loan and the car’s actual value.

Gap insurance example

Suppose you're involved with a covered accident and are found not to blame. Your car is harmed destroyed and should be supplanted. You actually owe $15,000 on your auto loan, but your car’s ACV is just $11,000 (this is here and there alluded to as being "underwater" or "upside down" on your loan). In the event that you have gap insurance, it can assist you with covering the $4,000 gap between what you owe on your loan and what your vehicle is worth, after your deductible. Not all drivers require gap insurance. In any case, in the event that you are leasing or making payments on a vehicle, you should discover out if gap insurance is ideal for you.