Did you know that when you purchase a new car, it begins to depreciate the moment you drive the car off of the car lot? Imagine financing a new vehicle for $35,000, getting into an accident, and totaling your car on the way home. Unfortunately, you financed the car for $35,000, but the book value for the vehicle is now $32,000. That leaves you on the hook for the additional $3000 when your auto insurance policy pays out. That is why it pays to have gap insurance.
Gap (Guaranteed Asset Protection insurance) is an optional coverage you can add to your policy when you finance your car to cover the gap between what you own on your car and the actual cash value your car is worth when you total it. At Guy Hurley McNeil Agency, Inc. in Rochester Hills, MI, we know this reality all too well, and we are here to help.
So, revisiting the earlier scenario about purchasing a new car for $35,000, insurance is only willing to pay $32,000 for the vehicle’s value. Gap insurance is designed to possibly cover the $3000 gap between what you owe the finance company and the amount your insurance policy paid out for the accident. Suppose you feel you may be about to be at risk of this type of situation when looking to finance your new vehicle. In that case, gap may be the wise choice to supplement your comprehensive and collision coverages on your auto policy.
For more information about Gap Insurance, Call Guy Hurley McNeil!
Call Guy Hurley McNeil Agency, Inc. in Rochester Hills, MI, at (586) 731-1180 to learn more about gap insurance and see if it may benefit you. We have the experience and expertise to give you peace of mind and protection when enjoying your new car.
