Q: What is Gap Insurance for My Vehicle?
If your vehicle gets totaled in a wreck, gap insurance is a type of insurance that bridges the gap between the fair market value of your vehicle and what you still owe on the vehicle if you are financing it. For instance, let's say you still owe $15,000 on your vehicle at the time it was totaled, but the insurance company is only going to pay you $10,000 because that is the fair market value. In a situation like that, gap insurance will cover the difference.
Here are a few important points about gap insurance:
- It is not part of your auto insurance.
- You typically purchase gap insurance at the time you purchase your vehicle.
- It is relatively inexpensive.
- It is important that you have gap insurance since you don't want to end up "upside down" (owing more than the car is worth) after an accident in which your vehicle gets totaled.
If you have any questions about gap insurance or other aspects of your property damage claim, please call our office to speak with one of our experienced Atlanta car wreck attorneys.