by admin on March 14, 2011
Gap Insurance is something that most car owners don’t think about. It is however becoming an critical part of purchasing an automobile.
When the buyer purchases a new auto or used auto there is always a difference between the Insurance companies idea of what that automobile is worth and what you owe on the loan. Even a new automobile depreciates the minute you drive away from the car lot.
Most Insurance carriers calculate the value of your automobile by the Kelly Blue Book and considerations of any additions to the car and what those add to the value of that automobile. The problem here lies with the purchaser/owner of that automobile.
If the loan on the auto is for more than the Insurance companies final decision on it’s value then the owner is held responsibility by the lender to pay the balance of that loan. This is where your GAP Insurance comes into play. GAP Insurance pays that difference. You the purchaser/owner is left with no outstanding balance on the auto loan.
The cost of GAP Insurance is actually quite reasonable if you consider the odds that you may be involved in an auto accident that would make the auto classified as a total loss.
Some of the lending agencies such as Toyota Motor Corp., GMC, US Bank, and many others will offer GAP insurance at the time of purchase. If this is not offered then there are several well- known insurance carriers such as Esurance, State Farm, Farmers and many others that offer it included in your auto insurance plan for what is a minimal cost. The brand tag on GAP Insurance can be as little as $10.95 a month depending on what insurance carrier chosen.
If you ever earn that you are in this situation and you need to use your GAP Insurance it can be a godsend. If an accident occurs and the auto insurance company deems your car a total loss, contact your GAP Insurance and file the claim per their requirements and let them hold over the case. Contact your lender and let them know that you have GAP Insurance on the automobile, give the lender the insurance company name, address and phone number and let the two companies work the issues out between them. Nothing more need be done by the auto owner unless there are complications between the lender and the insurance carrier.
GAP Insurance is clearly peace of mind for a new or used car owner with a loan on their automobile.
by admin on February 27, 2011
Rental car insurance purchase is a decision that should be made when initially planning a trip. Car rental agents will ask if you would like to take insurance, and the decision as well as the responsibility will be yours to bear. While rental insurance is optional, deciding to travel without it could turn into a costly mistake. Vehicle repairs can be costly, as well as liability for any traffic incidents. Weigh your options, as well as potential costs, as rental car insurance has both pros and cons.
Car Rental Insurance; Is it provided by your auto insurance policy?
Before signing an agreement to purchase rental car insurance, check with your private automobile insurance for coverage options. Some private insurance policies already cover car rentals, and will provide a coverage amount as well as specifications. Perceive over insurance policy for in-state or out of state coverage. If your promenade is out of state, or to a foreign country, your private auto insurance may or may not cover rental cars. In addition to initial coverage, check your policy for expenses that will be covered such as medical bills or vehicle repairs.
Car Rental Insurance; Will business cover expenses?
If you are planning a business trip, you should check with the employer for any corporate coverage already provided. There is no need to recall additional car rental insurance if your company has a policy in place. In case the employer does not have coverage, check for business trip reimbursement policies so that the rental car insurance amount can be reimbursed to you. Retain track of all receipts and documents provided by the car rental company, as they will be required for reimbursement to be issued.
Car Rental Insurance; Is it money well spent?
Most travelers will breathe a sigh of relief when a trip is over and there has been no damage to the rental car. They will feel as if money spent on rental car insurance was a ruin, as nothing bad happened. However, accidents can occur, even if it is not the rental car driver’s fault. Even minor damage to the rental car will require you to owe an explanation to the rental car agency.
Rental companies will charge for the physical damage to the vehicle, repairs, labor hours and materials. In addition to these claims, some companies charge for diminished sale value of the rental car. Vehicles that have been in previous accidents or have had repairs would have diminished resale value. The rental agencies may also charge for loss of rental income, as the vehicle was unavailable to rent to other travelers.
Car Rental Insurance; Are you willing to take the risk?
Rental car insurance comes down to a decision; yes or no. The driver choosing to rent a vehicle is also taking all the responsibility, including any monetary claims. If you are willing to engage the risk, and hope for the best, then rental car insurance is not a concern. However, if you would prefer to be rather safe than sorry, rental car insurance should be an valuable part of your dart planning.
