Leasing or Buying? Compare Auto Insurance to Cover the GAP

Though all responsible drivers understand the importance of being adequately insured, there are instances when it becomes even more crucial to compare auto insurance. For example, when you need to purchase GAP insurance, you really need to make sure you get all of the coverage you need. Otherwise, in the event of damages, you could be out more than just a car.

When Do You Need GAP Insurance?

When it comes to buying a new car, many Americans don't have the available funds to count out thousands of dollars and drive their new vehicle off the lot owning it outright. That's why financing is so important: it allows drivers to purchase a dependable vehicle while paying it off, either completely or partially, in installments. Whether the vehicle is financed by the bank or a credit union, any driver that uses financing will also need GAP insurance. In the event that the vehicle is totaled or stolen before it is completely paid for, GAP insurance covers the difference between what the collision or comprehensive insurance will pay for the car and the remainder of the loan – allowing you to walk away without paying too much out of pocket.

Another time you might get GAP insurance is when you lease a vehicle. Typically, monthly payments on a lease are much lower than on a financed car – but because you're the one driving it, you're also the one responsible for damages. In the case of leasing, GAP insurance can be even more important, as the difference between what you pay for the car and its actual value is much higher. Without GAP insurance, you can wind up in deep debt for a car that you never even owned.

Comparing Auto Insurance Quotes

Most drivers want to compare auto insurance quotes as quickly as possible so they can legally hit the road in their new vehicles. And that's why online insurance quotes are so convenient. Whether at home, at the office or even at your car dealership, as long as you have internet access, you can request free quotes from a reputable comparison site like AgentInsure. It's simple and quick to fill out an online form to request information about liability, collision, comprehensive and GAP insurance. Better yet, you'll also receive the phone number of a licensed insurance agent in your area so you can contact him immediately for additional information if necessary.

Remember to always take your time when comparing auto insurance quotes. Read the fine print as carefully as you do on the financing contract, and if you have any questions, write them down so you can ask them of the insurance agent later. Make sure you understand for how much the car is insured, what your deductibles are for liability, collision, and comprehensive, and what types of damages are covered. With a bit of research and time, you can find a quote that offers you all the coverage you need at a price you can afford each month.