Not all people are aware of what GAP car insurance is. However, it is necessary for every driver to know this kind of insurance, at least when they have their car on loan or at lease. Remember that whenever you have leased a car, or when you have applied for a car loan, and are driving it, you always have the possibility of being involved in a car accident even though the car is not yet fully paid. In this case, having not paid fully for the car does not mean that you will be immune to being involved in vehicular accidents. In fact, you have higher risks of losing a lot of money whenever you are involved on road accidents but did not yet paid fully for the car that you are driving. This is the situation wherein GAP insurance may help you a lot.
It is true that you may actually insure your car even though you did not yet pay for it fully. In any case, car insurance is required by most states before you can drive your car legally. However, when you do not have GAP insurance, and have your car under a loan or a lease, whenever you are involved in a vehicular accident and your car is totalled, the car insurance company would only pay for the current cash value of your car. The problem with this is that the present cash value of your totalled car may be much lower as compared to the amount when you bought it. his will surely cause you troubles whenever you have to pay the remaining balance of your car loan.
With GAP insurance, the gap between the present cash value of your totalled car and the cash value when you got it would be paid for your car insurance company. In this case, you do not have to worry on whether you must have to pay for additional bills or not. In other words, the amount between your financial loss and your deductibles will be covered by GAP insurance. Therefore, the next time that you will get car insurance, remember that some companies actually offers GAP insurance as an option, is addition to physical damage coverage.
In this case, do not forget to get this GAP car insurance option, at least until you have paid fully your car loan or lease. This may prove to save you the time you get involved in a vehicular accident, wherein your car is not yet fully paid.