Gap Car Insurance Eugene Oregon OR

Reader’s Question:

My partner told me that if I am to get or lease a new car here in Eugene, Oregon, I should get gap insurance. But what exactly is gap insurance?

Lucas

Eugene, OR

Well, Lucas, your partner is right. Actually, gap insurance is the best way to fully protect your investment. Gap insurance is very important because standard comprehensive and collision auto insurance policies only cover the price that a seller of the vehicle would sell and a willing buyer would buy under current market conditions without being under duress or threat. This can go to as little as 80% of the real value of what you actually paid for your car.

What this means is that if ever you get yourself in a car accident, and you car is declared a total loss, you might get in trouble because it is possible for you to end up paying off a loan on a car that you can’t even drive.

Gap insurance protects you from this type of scenario. What a gap insurance policy does is it covers the amount that is between what you owe on your automobile and what your auto insurance carrier says it is worth.

On the other hand, if you are just leasing your car, the leasing company will most probably require a gap insurance policy.

Gap insurance policies also work well to insure you in the event that your new car gets stolen. You see, new vehicles are more likely to be attracted to new vehicles. In the event that your car gets stolen, the situation is identical to an at-fault accident on your part, wherein your comprehensive insurance coverage shall pay for the value of your vehicle but not necessarily the amount that you loaned from the bank.

Auto gap insurance policy is not really something that you shall need forever. It’s just something to give you peace of mind and driving security during your first years of driving there in Eugene, Oregon.

Tags: auto insurance, gap insurance