Car Insurance Question Texas TX
Reader’s Question:
What is a Gap Insurance? Please help me recognize it from the rest of car insurance because I am having a hard time understanding the elaborate explanation of my insurance agent in Texas.
Abbott Dickinson
Houston, TX
Have you tried asking your client to clearly explain the nature of Gap Insurance and how is it different from the rest of the types? If you did and still, he was not able to give you at least a picture of this, think twice of availing his offer!
Some agents in Texas can get very excited selling but fail to clearly explain everything to the clients. The clients therefore, especially those who were first timers to avail insurances were easily grab the offer thinking that they’ve got cheaper rates, well of course, that’s what agents usually say. Please have at least three insurance companies be compared before you decide to get one.
Gap insurance is an insurance that can provide valuable protection during the early years of your car’s life if you have a loan or a lease.
If loss happens, Gap insurance is responsible to pay will the difference between the actual cash value of the vehicle and the current outstanding balance on your loan or lease. Gap Insurance protects your vehicle lease or loan and that’s definitely great right! Sometimes it even pays your regular deductibles.
Your insurance company also pays the actual cash value when your car is totally crashed by accident, theft, fire, flood, tornado, vandalism, or hurricanes. Of course, the value may be less than the actual.
The amount between your insurance deductibles and the loss from this financial shortfall is the “gap” you can owe.
Hope this would help, Douglas! God speed..
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