Not too many people know about gap insurance, particularly when it comes to extending protection for their cars. Normally, people just get basic coverage for their cars and go on using their vehicles resting in their thoughts that they are sufficiently protected if ever accidents take place.
Yet, there is more value contained in a regular gap insurance policy than most motorists can ever dream about. For starters, have you ever thought about car depreciation? Just like all other things that have value, your vehicle will eventually suffer from this, and depreciation can happen sooner than expected.
Most likely, you are not aware of this, but your car actually begins to depreciate once it gets taken out of the factory. Thereafter, its clock goes on ticking, so much so that in just about three short months, the value of your car would have gone down by at least 20%. If this sounds unbelievable, take your newly-bought car to your insurer and ask them to assess it for its present value. The value they give may come as a complete surprise given the current market prices of vehicles.
What can further aggravate matters is when unfortunate incidents take place like sudden road accidents, unexpected car thefts, or extreme weather conditions; incidents that would bring extensive damage to your vehicle. In any of these cases, repairs are called for, and given the continuing depreciation of your car, that coverage you initially placed your hopes on may not be enough to cover your expenses.
Of course, this scenario excludes the monthly payments needed if you acquired your vehicle through a loan agreement. When this is your situation, you might think that it would have been better if you just contented yourself in taking public transportation like buses when going somewhere instead of buying a car.
With gap insurance, however, things can be better handled. This particular policy type functions as cover for any gap that occurs when a balance results after getting the difference between the present car value and the compensation that an insurance company will extend based on its assessment.
Given its relative value, it still comes as a big surprise as to why very few motorists avail of a gap policy as added protection for them and for their cars. What comes as even more surprising is that gap insurance is not something that is rarely found. Many insurance companies are known to offer this as part of an all-inclusive package. However, if your insurer is unable to provide you one, then you can opt for a separate policy as offered by other insurance firms.