No one wants to think about the possibility of totaling their car. But it can happen, and it’s best to be prepared. If you’re leasing or financing a new vehicle, and it is totaled, or if it’s stolen and never recovered, your auto insurance will pay what your car is worth at that moment in time. This may end up being less than what you still owe on it, leaving you to pay the difference out of your own pocket. That’s where GAP Insurance comes in. It can cover the difference between what you owe on your car, and what your insurance company pays you for it. You might want to think about buying GAP Insurance if you’re leasing the vehicle, your down payment was less than 10 percent, or your auto loan is 60 months or longer. Because it’s no fun to still be paying for a vehicle that you can’t drive.
Gap insurance is an optional car insurance coverage that helps pay off your auto loan if your car is totaled or stolen and you owe more than the car’s depreciated value. Gap insurance may also be called “loan/lease gap coverage.” This type of coverage is only available if you’re the original loan- or leaseholder on a new vehicle. Gap insurance helps pay the gap between the depreciated value of your car and what you still owe on the car.
If you’re leasing or financing a new car, many lenders require you to have collision and comprehensive coverage on your car insurance policy until your car is paid off.
Gap insurance is meant to be used in conjunction with collision coverage or comprehensive coverage. If you have a covered claim, your collision coverage or comprehensive coverage would help pay for your totaled or stolen vehicle up to its depreciated value. According to the Insurance Information Institute (III), when you drive a brand-new vehicle off the lot, its value immediately decreases. And, most vehicles’ value depreciates about 20 percent in the first year of ownership.
But, what if you still owe more on your loan or lease than the vehicle’s depreciated value? That’s where gap insurance may help.
Signature Auto Group New York & Florida’s Premiere New Car Leasing Company
With Signature Auto locations in Brooklyn, NY and Fort Lauderdale, FL we are dedicated to providing our New York Auto Leasing and Florida Car Leasing customers the best deals on the latest Auto Leases. As a company we learned a long time ago just how significant it is to have talented, loyal and motivated staff to serve our clients in every aspect; before, during and of course even after such an important vehicle purchase. Even though this will always be an ongoing process, this organization has been fortunate to have attracted and retain such extraordinary individuals at every single level in this company.
We are honored to serve all Signature Auto Group clients past, present and future clients in the major areas of the United States and around the rest of the world. Signature wants their customers to enjoy life to its fullest. We also have high standards that the staff agrees with and are committed to providing you with the service you deserve. The sales staff is extremely knowledgeable about our products and is there to get you the fantastic vehicle that you want and desire. Come on in and check out our extensive inventory that includes all the latest makes and models of vehicles. It doesn’t matter whether you are wanting to purchase or lease; we have the perfect plan for you. And don’t forget to check out our specials, we are always having great lease specials on a lot of the new vehicles in stock.