Gap Protection Will Help Make Sure Your Car is Paid Off After an Accident
If you have not heard of gap insurance, then you do not know how much this insurance can save you from being in a tough spot. If your car is a total loss in an accident or stolen, your car insurance will give you a settlement based on the cash value of the car. But, what if you owe more on the car than it is worth? This is where having gap insurance, or gap protection, is a big advantage. Gap insurance will cover the difference between what you owe on the car and what it is worth in the event of theft or if it is totaled in an accident. If you do not have gap protection you would end up paying this difference out of pocket. That could leave you with no car and a big bill to pay. So, when is it necessary to have gap insurance? Here you will find some guidelines for when it is crucial to purchase gap protection.
Gap insurance is important if your car loan is more than the car is worth. This is being “upside down” on the loan. If you are not sure if you are upside down on your loan, or want to prepare for a car you are planning to buy, the following circumstances are when purchasing gap insurance is a wise choice.
·You made little or no down payment on a financed vehicle.
·You have a long term car loan (more than 60 months).
·You purchased a car that depreciates quickly and does not have good resale value.
·You will put a lot of miles on the car.
·You traded in a car that you were upside down on and added the owed amount on that car to the new car loan.
If any of the above applies to you, you will be glad you purchased gap protection if you have an accident or theft that results in a total loss. If you are still not sure if you need gap insurance, and you are looking at quality used cars in Miami for your next car purchase, Prado Auto Sales is here to help. Our sales staff will let you know if gap insurance is a recommendation for your pre-owned car purchase with us. Please visit us at 7300 SW 8th Street, Miami, FL 33144.
Prado Auto Sales is dedicated to customer satisfaction in hopes that you always remain a part of the Prado Family. We have provided you with a Google map, address and phone number to help you find us easily.