After purchasing an automobile, anecdotally, the value of the vehicle diminishes greatly as soon as you drive it off of the lot. As such, individuals who purchase new or used vehicles often owe more on the vehicles than the vehicle is actually worth.
When an automobile is considered to be a total loss after an accident, you may only be reimbursed for the value of the car, not what you owe. To learn more about saving yourself from having to pay the rest of the vehicle’s remaining balance, contact the Chicago auto insurance agents of Insure on the Spot at 888-972-SAVE today.
Understanding Gap Insurance
Gap insurance is a type of auto coverage that car buyers can purchase. This coverage can save drivers a significant amount of money if their vehicle is completely destroyed in an accident within the first couple of months or years of owning the vehicle.
Since the value of a vehicle greatly diminishes over time, individuals who total their cars may actually owe money on their totaled cars even though the vehicle is no longer in their possession. The reason for this is that insurance companies will only reimburse drivers for the value of the vehicle.
The remaining balance becomes the driver’s responsibility, unless he or she has gap insurance. Gap insurance reimburses drivers for the remaining balance owed on a car.
Gap insurance may be a sound investment for you, especially if you are financing an expensive automobile. To learn more about gap insurance and whether it may benefit you, contact the Chicago auto insurance agents of Insure on the Spot today at 888-972-SAVE.