Auto GAP Insurance – Is It Really Necessary, or Is It a Waste of Money?

admin — Tue, 19 Jan 2010 23:18:59 +0000

We have feelings about that GAP insurance policy in a couple ways. First, we have those that swear by it, have purchased it, and thankfully never had to use it. And there are those, that have been into a situation where their car was declared a total loss. And those folks had to figure out a way to pay the inequity back to the bank. Pretty tough dilemma, but hopefully after I shed some light into this insurance option, it might just become a viable and sensible choice.

The abbreviation of GAP stands for “Guaranteed Auto Protection”. Self explanatory but sometimes gets confusing when explained unclearly. Alright, going back into the definition of inequity or negative equity as its most widely referred to. It is when someone owes more to the bank than what the current market value of the asset is. And this asset can be autos, boats, rv’s, motorcycles, any asset that has a constant daily depreciating value. What GAP does for consumers, is real simple. In fact, think of it as a safety net in event that if something happens to your depreciating asset, whatever the case may be, that GAP insurance will pay the difference between what is owed and what your insurance company settles for plus the insurance deductible up to a $1,000. And for those of us who have financed or leased a car without putting any sort of equity down, will know exactly what I mean. And statistically, about 75% of consumers are in a negative equity position. Very frightening indeed!

So what I’m closing at, GAP is a worthwhile investment as long as you’re financing the full purchase price of an asset. No sense taking a risk hurting your credit. GAP is relatively inexpensive and only costs around $500-1000, which does very little to your monthly payment. So when you’re making the decision to get GAP, make sure you’re aware at the benefits before you say no.

By: Shaun Patrick Davidson

Cheap Full Coverage Auto Insurance

admin — Sun, 06 Dec 2009 20:22:50 +0000

If you are in the market for cheap auto insurance, you are bound to be confused by the wide variety of choices available. It pays to take some time before you make a decision. It is therefore important that you consider several aspects before you take a definite decision. Once you are armed with the basics, you will be ready to go ahead and choose the perfect auto insurance plan for your needs. You can — and should — of course, seek some help. When you hear the phrase “full coverage auto insurance”, do you know what it means? This is simply a comprehensive coverage that would cover you, personally, in every aspect and possible type of insurance the company offers.

For example, coverage for medical costs may be optional with some insurance policies. But if you have a full coverage auto insurance policy, you can have your and your passengers’ medical costs covered, should you be in an accident where injuries are sustained.

A full coverage auto insurance policy also covers liability. This means if you are at fault during an accident, the coverage will enable your policy to compensate for the damages caused by you. It is always advisable to have liability coverage in your auto insurance. Although you may always claim that you had never been at fault, you can never be sure where the blame will ultimately be placed in an accident. It is always better to be on the safer side with auto insurance.

The premium to be paid and the policy period will differ based on the insurance company, your age and also your gender. The age of your vehicle also determines whether you should go for full coverage or not. Supposing yours is an old vehicle on its last legs, it is not necessarily a good decision on your part to go for full coverage, as you will end up paying a higher premium. You may end up paying more premiums than the current market value of your car. Newer cars, or any vehicle for that matter, are better served with cheap full coverage auto insurance policies. There are other comprehensive policies that can cover you in cases of vandalism or arson, as well, though they are not as commonly purchased by people.

You can always check out the various online resources available for more details on cheap full coverage auto insurance. Also, don’t be afraid to get in touch with insurance agents, as they can provide you great information on the current trends in cheap auto insurance.

By: Jennifer Bailey

Auto insurance » Current Market Value

Auto GAP Insurance – Is It Really Necessary, or Is It a Waste of Money?

Cheap Full Coverage Auto Insurance