Gap Auto Insurance Policy On Advantage Auto Quotes

It is a well-known fact that cars lose their value as soon as they are driven off the lot, but many consumers do not realize that a car can lose as much as 20 percent of its value immediately.

If you've recently bought a new car and put down less than 20% downpayment, you've probably been offered by the car dealership to add a Gap Auto Insurance Policy to your regular auto insurance policy. GAP coverage is offered and designed especially for new car purchases and can be a real lifesaver. For example, let's say that you purchased a car for $25,000. If you total that car while you still owe $20,000, then you might think that your insurance company is going to cover the $20,000. The truth is, that they are only going to pay out what the current value of the car. So if it is only worth $17,000 due to immediate depreciation, you are then responsible for paying the remaining $3,000 on a car that you don't even have. This is unreasonable and can be easily avoided with a Gap insurance policy. This type of insurance policy tries to correct this situation by covering the "gap" between what you owe and what the car is worth.

Most dealerships offer Gap Insurance policies to consumers but are often costly. To avoid spending too much when considering to get this type of auto policy, consider using a quoting service so you can compare rates offered by the major auto policy insurers. At Advantage Auto Quotes, they can work with consumers to find the cheapest available Gap Coverage For New Vehicle. They use insurance agencies like Allstate, AIG, Liberty Mutual, and Nationwide, to find you the best rates out there.

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