Gap Insurance in Florida: Why You Need It
It’s estimated that within the first year of a new vehicle purchase that your vehicle depreciates in value by 11 percent. Additionally, that depreciation percentage increases each year that you have a loan attached to your car.
GAP insurance is the acronym for “guaranteed auto protection.” It’s a type of insurance coverage that gets sold with new vehicle purchases. It may be available with your current auto insurance carrier.
What Does Gap Insurance Cover?
GAP insurance functions to pay the difference between the value of your vehicle if it gets totaled versus the amount of money that you owe on a vehicle. For example, if you have a car that you financed, and you owe $20,000. The car gets totaled, and the auto insurance carrier valued the car at $15,000. The $5,000 difference is what you owe to the lienholder because your auto insurance carrier paid the lienholder $15,000 and not $20,000. GAP insurance should pay the $5,000 difference to the lienholder.
What Isn’t Covered by Gap Insurance?
GAP insurance does not cover types of financial situations beyond the payout of a totaled auto. For instance, GAP insurance will not pay your lienholder should you lose your job, and you’re unable to pay your car loan. GAP insurance will not pay for a repossessed vehicle. It doesn’t cover rental cars if your vehicle is at a garage for repairs, and it doesn’t apply to any previous vehicle trade-in balances that got rolled into your current auto loan. Review your loan and auto policy. You may want to add the dap! If you are injured and your car is a total loss, call Shannan Neri, a Bradenton Florida personal injury attorney for help navigating your insurance coverage.
Why Do You Need an Attorney?
GAP insurance seems straightforward. However, many claimants have issues when they go to make a GAP insurance claim. For instance, when a person purchases GAP insurance through a dealership they often buy the coverage from a carrier that’s distinct from their auto insurance carrier. Sometimes the GAP insurance carrier values a totaled vehicle differently than the auto insurance carrier, and this could mean a claimant still gets left with a gap between their totaled vehicle and the amount paid to the lienholder. The Neri Law Group has experience representing clients against insurance companies, and Attorney Shannan Neri can fight to make sure that you get the coverage you deserve. When you need a Bradenton Florida personal injury attorney, the Neri Law Group has you covered. Contact our office to begin building your defense.
