Understanding Gap Insurance

It’s common knowledge that your brand new car depreciates in value as soon as you drive it off the lot in Harrison, NJ. In fact, it continues to depreciate as you drive it. Each mile you drive and each day the sun beams down on your shiny, clear coat, you are losing value. The difference between what you owe the finance company and the value of your car is considered a gap; this is the amount you are responsible for paying to your insurance company if you total your car.

How Gap Insurance Works

Fortunately, car insurance companies offer coverage called Gap insurance that will help you cover the cost of a total loss to your vehicle. With Gap insurance, your insurance company will pay the actual cash value of your car and they will pay the difference between what you owe the finance company and what they already paid. Gap insurance is imperative if you have a brand new car because you can protect the value of the car and your wallet, by opting in for the coverage.

It is important to keep in mind that some companies may only pay a percentage of the difference, so ask questions and compare your options to ensure that you are fully covered.

Getting Gap Insurance

The best agents in 07029 offer Gap insurance because they realize it truly protects their customers and many people are interested in the coverage. The process is simple, once you call around for insurance quotes for your new vehicle ask the insurance companies whether they offer Gap insurance coverage for your new vehicle.

Adding Gap Insurance to Existing Coverage

Adding cap insurance coverage to an existing policy is possible under certain restrictions. Each insurance company establishes their own restrictions, so you should contact your insurance provider to add gap insurance.

Opting out of Gap insurance is like throwing money down the drain since you are losing money each time you drive your car. To avoid paying the finance company if you are in a wreck, you can purchase Gap insurance for a few dollars and have the peace of mind knowing that you are covered if you are in a wreck with your new vehicle.

Is A Learner’s Permit Going To Raise My Car Insurance?

Newark, NJ is one of the largest cities within the state. It is right across the river from New York City and many people make the commute into the Big Apple for work. Many people are homeowners and the home value for the homes in the 07107 area are a little higher than the average for the state.

When you have a young driver in your home, he or she starts out with a learners permit. The moment that this is obtained, you need to call and make the update to your car insurance because they will be getting behind the wheel of your car.

The rule of thumb is that new drivers are high risk because of their inexperience. A learner’s permit in Newark doesn’t automatically mean a high cost of car insurance. We recommend working with one of our agents in NJ where we can talk to you about options. We take a three step approach to helping you.

1. Learn of your needs

2. Explain coverage options

3. Find quotes

When you follow these three steps, you can ensure you get car insurance with someone in the house that has a learner’s permit without spending more than what is necessary. It is likely that you will see an increase within the cost of the policy, but it doesn’t have to be a lot. We work with multiple insurance companies in Newark, so comparisons can be made quickly. You will be able to see who charges what and then make an educated decision.

Our agents can find a policy within 07107 that is manageable and provides you with the coverage you need. This way, in the event of an accident, you can file a claim knowing you have to pay very little out of pocket to make the repairs and get the care that is needed.