Immediately, you reported it to the auto insurance company, which they in turn play with numbers, mileage, depreciation, market values, and other related stuff. After a couple of days, the adjustor informs you that the worth of your car at the time of the accident is $25,000. This is the amount that the auto insurance company will provide you. But the finance company that gave you the loan will still consider the car to be worth its original price. They also play with numbers, interest rates, taxes and license fees. Then they come up with the amount of $38,000. This is the amount that you need to pay them. If the auto insurance company releases the $25,000, where will you get the remaining $7,000? Your car is already a wreck but you still owe the finance company.
You need not face such a dilemma if you have a gap insurance. With the gap insurance, you can ignore the difference between the amount covered by the regular car insurance and the amount you owed the car loan company. This difference is called a gap and the gap insurance bridges it so that you need not rack your head for additional financial resources.
A car lease contract must also have a gap insurance. It is a feature that prevents you from draining all your finances. Some dealers who lease cars dont offer a gap insurance. This is okay as long as they include a gap waiver in their lease contract. This waiver declares that you are no longer responsible for gap charges that may occur when your leased car is wrecked.
When you get a gap insurance, determine how much is offered in the gap policy. You should also know how much will be added to your monthly bill. A gap insurance, for it to be recognized, must be accompanied with comprehensive insurance policies that cover collision.
Sometimes, a gap insurance may no longer be needed if the terms in your regular auto insurance policy indicated that the company will pay off the full amount you owed from the car loan lender.
The Truth About Auto-Transport CompaniesAuto-transport companies are designed to facilitate a person s need to transport cars from one location to another. Whether a person is moving or they have sold their vehicle via Internet auction, the car can be transported without adding mileage or road wear to it. In some cases, it s just easier to transport a car rather than make the lengthy drive out of time considerations. There are some things to know about auto-transport companies in advance. The process of shipping a car from one location to another, especially across long distances, requires planning ahead and doing your homework. Whether you ..
About The Author
auto glassThunk! Crack! Ding! Those are the sounds we hate to hear as we drive on the highway. It means, here comes trouble. It means in my experience, that I may need to have some auto glass repair done. I have had a broken windshield a few times in my driving career. Every time something happened to my windshield, it happened while driving at high speeds on the highway. You can never tell if the car in front of you will hit s stone and ding your windshield. Perhaps you are stuck behind a dump truck and a pebble falls off. At highway speeds, it is almost certain that you will need an auto glass specia ..
Peter Garant is writing articles about bad credit for his credit repair kits blog http://creditrepairkits.blogspot.com/ and articles about car loans for his family finance site http://www.halds.com/category/car-loans/.
Peter GarantGap Insurance: A Financial Safety Belt
