Owen & Associates Home Page Blog Facebook Twitter LinkedIn Serving Your Community Since 1921 Get a Quote File a Claim Make a Payment

Shaking hands in front of carTypically when you buy car insurance, many carriers will only cover your car for Actual Cash Value (ACV). ACV is buying price of your car, and then removing the the car's depreciated value.

There are instances, where a driver will owe more money on their vehicle than the Actual Cash Value. This is especially true considering how quickly a car’s value decreases once it’s driven off the lot.  In these cases, if the owner of the vehicle has an insurable event that results in a total loss, they will end up owing their auto lender money on a car they’re no longer able to drive.

GAP insurance was created to pay the difference between the actual cash value and the remaining loan balance in the event of a total loss.  In most instances, a car salesman will try to push the dealer’s contracted GAP policy and include the premium into your monthly car payment.  This can save you time, but you will soon discover it can be very expensive. This is also not a very cost effective policy as you will end up paying interest on the GAP coverage since it’s lumped together with your loan payment. 

Contact us, your independent insurance agent for GAP coverage. We can provide you with coverage at a lower rate without the interest on your policy premiums. Contact us today at 770-422-0456 for more information about GAP Insurance or get a free Marietta GA car insurance.

Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive


View Mobile Version