Determining if you have term insurance through your car insurance policy is simple. Car insurance documents usually have a page that lists the coverages in your policy, including optional coverages, such as car collision coverage and comprehensive auto insurance coverage. Look for gap coverage in this list. Gap (guaranteed asset protection) insurance coverage protects you if your car is stolen or destroyed and you owe more than it's worth.
If you've owned the car for a while, you'll need to decide if the price of supplemental insurance outweighs the potential benefit. When there's a significant difference between the value of your car and what you owe for it, supplemental insurance is valuable protection. You can check your current car insurance policy or the terms of your lease or loan agreement to see if you have provisional insurance. Gap insurance coverage bridges the gap between what you owe on your car loan and what your car is actually worth.
You can include a larger amount of additional insurance in the cost of your auto loan at the dealership, since you'll pay interest on top of the full price. If your vehicle is stolen or completely destroyed and your comprehensive auto insurance or car collision claim is approved, your breach insurer will pay the mortgage creditor what you owe under your expense insurance policy. Before you commit to taking out emergency insurance for a used vehicle, especially an older one, check the car's market value. Gap insurance isn't required for any insurer or for any state, but some leasing companies may require you to buy it.
With this information, Insurify can provide drivers with information on how companies set the price of their auto insurance premiums. Car insurance coverages vary depending on individual and state needs, but almost all policies contain liability coverage. Liability is mandatory auto insurance coverage in 49 states, while comprehensive and collision coverage are optional if the car is paid for. Gap insurance is an insurance product that you can add to your existing car insurance coverage through an insurance agent.
The longer you've owned the car and made payments, the smaller the difference between the value of the car and what you owe.