Get A Quote About Payments Contact Home Page
Quick Links

Auto Home Health Commercial

Tree on carYou have auto insurance. It is a strong policy that will cover you. Why would you need gap insurance?

Gap insurance can help cover you in case you need extra coverage, particularly if you have a loan on your car. In such a situation, you should consider investing in gap insurance.

What is gap insurance?

Gap insurance can be hard to understand at first.

It is best to think about gap insurance by first thinking of your regular auto policy.

A general car insurance policy often covers your car based on the value of the car. As you drive your car, that values decreases. Regular auto coverage levels are often lower on older cars than they are on newer cars. Many different factors influence the value of a car, such as the mileage and age of the car.

When buying a new car, many buyers finance, lease or take out a loan to pay for the car in installments. Having a loan or financing on the car means that the car’s driver handles paying back the financing to the bank in total.

But, your auto insurance will cover the value of the car, not the value of the loan. That’s where gap insurance comes into play.

When will gap insurance pay?

If you total your car while you still owe money on the car, you will receive a payout from your insurance company. Companies usually base the payouts on the value of the car at the time of the accident.

Yet, you will still have to meet the total value of the financing on your car. That way, you can free yourself of paying money to a bank for a car you no longer have.

That’s where gap insurance can help. Gap insurance will help you pay off most, if not all, of the remaining value of your financing. If your car is newer, and you still owe a significant amount on the car, gap insurance can go a very long way to helping you pay off your financing in the event of a totaled car.

We’re here to help you learn more about gap insurance so that you can rest easy having your options covered. Give Insurance Providers a call at 417.623.8300 today for a Joplin auto insurance quote.

Share |

No Comments

Post a Comment
Required (Not Displayed)

All comments are moderated and stripped of HTML.
Submission Validation
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
  • 2016
  • 2015

View Mobile Version
View Our Latest Insurance News
  Featured Coverage
Quick Links
Insurance Providers Social Networks
Home    |    About Insurance Providers    |    Get a Quote    |    Customer Service    |    Make a Payment    |    File a Claim    |    Join Our Newsletter    |    Contact Us

Visit Us at One of Our 3 Convenient Locations!

116 N Range Line Rd
Joplin, MO 64801

103 W Airport Dr
Carthage, MO 64836

2603 N Kansas Expressway
Springfield, MO 65801
Powered by Insurance Website Builder
How Can We Help You?
or call us at
Get A Quote My Policy Location Get A Quote Change my Policy FInd our Locations Facebook Twitter Google+
Twitter Facebook Google+