Losing your new car a few days after you took it out from a dealer’s garage can be a very stressful and painful experience especially if you do not have any gap insurance coverage. As any expert will tell you, the value of your new car drastically diminishes the moment you sign that contract of sale and drive the car out of a dealer’s place. The act of transferring ownership of the car to your name officially takes the car off a brand new category and into the slightly used class. Since your car is now officially under the slightly used group, its value diminishes by several percentage points. As it is, your insurers will only cover the estimated value of your car and not its original price.
Since your insurance providers will only cover the estimated value of your car, you need to fill in the gap between the car’s original price and its estimated price. To do this, you can either get a gap insurance coverage or simply pay for the difference in price from your own pockets. Now, unless you have tons of money in the bank to cover the payments in case your car gets totaled on the road, you should get gap insurance to cover the difference between original price of your car and its estimated value. This way, you will not have to pay anything in case you lose your car a few days after driving it from the showroom.
Where can you get gap insurance coverage? Most dealers around the country carry this product. There are also a number of online companies that are offering this type of coverage. To get the best deals, ask for insurance quotes and compare their prices. When you compare quotes, make it a point to strike a balance between price and service offered by potential providers. Remember that insurance is not only about prices, it is also about good service delivery. Buying dirt cheap policy that can hardly meet your needs is simply out of the question here, so be extra cautious when it comes to choosing your coverage and your service provider.
Is it alright to get to an insurance coverage from a small company? Both big and small companies have their strengths and weaknesses. There are a lot of small insurance firms that are stable and are well known for good service. If you find a small, but stable insurance firm that can offer you good service for very reasonable prices, then by all means go to that company.