It is not always the case that if we total our car, it’ll be replaced at the same amount we either paid or at least the amount we owe. Learn why it may not always be this way and what you can do to protect yourself.
Top Ways to Save on your Auto Premium
· Consider raising your deductible.
· Keep up your good driving record.
· Drive less to qualify for a low-mileage discount.
· Drive a car with safety features such as anti-lock brakes, airbags, etc.
· Install an anti-theft device.
· Ask about our multi-policy discounts.
Avoid the Financial Risk
Since a new car’s value drops significantly the minute you drive it off the lot, if you’re involved in an accident that totals your vehicle, you may find yourself owing the finance company more than your vehicle’s actual value. Gap insurance provides for the “gap” between the two amounts, guaranteeing that you don’t get hit by a big financial surprise too.
Don’t Get Caught Upside-down
Depending on your vehicle’s make, model and loan terms, we can help you determine if hap insurance is the right choice for you.
If you’re purchasing a new vehicle, contact Ferranti-Graybeal Insurance at (541) 567-5523 to learn about how gap insurance can complement your auto policy coverage options, and keep you from getting caught upside-down.
Is Gap Coverage Right for You?
Guaranteed asset protection, or gap insurance, is an optional automobile coverage that helps you transfer the financial risk if you’re involved in an auto accident and you owe more for your vehicle than the amount that it’s worth. This is referred to as being “upside-down.”
Here’s some basic information on gap insurance:
· New vehicle financing options: If you took advantage of a zero-percent-down payment deal, put a small amount of money down or stretch the life of your loan past 3 years, gap insurance is most likely a good idea. That’s because the vehicle typically depreciates considerably faster than you have paid down the value on your vehicle’s load.
· Used vehicles: Gap insurance isn’t typically available for used vehicles. To cover your risk, it’s wise to put down an ample down payment and finance the vehicle for the shortest possible timeframe.
· Cost versus benefit: Gap insurance is offered for a nominal fee, which makes it a great value for anyone who finances or leases a new car.
· Leased vehicles: For those who lease a vehicle, gap insurance is considered an essential coverage because typically there’s no trade-in and little cash put down to lease the vehicle. Like purchasing a vehicle, if the car is a total loss, you’ll owe the difference between what you have paid and what you owe on the balance of the lease.