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What is GAP Insurance and Why You Need to Have It

It’s a great day! You finally got a brand-new car you have worked so hard for. Not a week after you drove it off the lot, you were in a car accident and your brand-new car was totaled. The insurance company sends you a check that will not cover the cost of a replacement vehicle of the same year, make and model. Now what? That’s where gap insurance comes in.

Gap Insurance Protects You

The purpose of gap insurance is to make up the difference between the cost of your loan and the fair market value of the vehicle. It protects you from finding yourself in a very difficult situation and ultimately gives you peace of mind.

Gap insurance also protects you in the event that your car is stolen and unrecovered. Instead of the insurance company giving you the actual value of the vehicle, they would cover the difference of the loan as well, so you’re not stuck with a substantial bill to pay and no car to drive.

It is always advised to thoroughly read through your insurance company’s gap insurance coverage so you are fully aware of the protection that you have.

Also, if you lease a brand-new car, gap insurance can be included with your lease as legally the car still belongs to the manufacturer. To make sure, read the fine print of your lease agreement before you sign and ask your local car dealer.

Questions about Gap Insurance

Contrada & Associates believes that Gap insurance is very important to have if you have a newer vehicle, or if you have interest payments on your car loan. If you do not add this optional insurance coverage to your policy, you could potentially find yourself in a very troubling financial situation.

After helping numerous clients through car accident claims and seeing the problems they face with their insurance coverage, attorney Contrada’s goal is to inform motorists of the options they have when it comes to car insurance coverage.

If you have been injured in a car accident, don’t sign or say anything. Contact a personal injury lawyer to discuss your case. Attorney Charles V. Contrada will explain your legal options, guide you through the process.

To speak to attorney Charles V. Contrada about a personal injury accident in Ohio or Michigan, call 419.841.4400. Charles has helped thousands of individuals with personal injury claims and will explain the legal options that are available to you. Call Contrada & Associates for comprehensive legal guidance that will help you to receive the most favorable outcome.

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Attorney Charlie Contrada has been practicing law since 1979, focusing his career on personal injury, car accident, and mesothelioma cases. Over the years, Charlie has helped thousands of clients throughout Northwest Ohio and Southeast Michigan to receive the settlements that they deserve.