Buy gap insurance. It isn’t cheap. It isn’t legally enforced. But, it can save the insured when the worst-case scenario comes creeping up the bank. As a quick reminder, gap insurance covers anything over what a vehicle is worth in a total loss scenario. If the vehicle is totaled (the damages are more than car’s current value), the insured is not responsible for what they owe over that. Gap insurance is essential. The easiest resolution to not having gap insurance is, well, getting it.
The problem with gap insurance is that it can cost insurance companies thousands of dollars, and that cost is reflected to the consumer. It is also a complicated specific in a policy because it isn’t always offered or enforced. Many consumers will think that comprehensive has gap as well, but this is often not the case.
For example, a driver must have comprehensive Car Insurance in Austin TX if they are financing the vehicle through a dealership (there are state price limits, but this remains generally true). The financier will require comprehensive so they are not at a complete loss if anything happens to the vehicle. But, this strict mandate does not include gap insurance. It is something that the insured can opt out of.
Furthermore, some insurance companies just don’t offer it. They would need to obtain it through the financing company or the dealership where the car was bought. The financier may not offer it as well. What happens is that a dealership will offer it upon purchase. This is reflected in the cost. It could make the total loan go from $20,000 to $22,000. The financier then approves the total loan. They have no overt idea of how that loan is organized and what went into it. They approve the total amount, and the consumer can have (or not have) any and all additional costs that they want.
Gap Car Insurance in Austin TX is deceptively not required. It is often pushed. It is easy to say no. But, that made be a cursed decision when an act of God happens and the insured owes on a car that no longer exists. Click Here for more now.
