DO YOU NEED GAP-COVER?
For low cost gap insurance please visit our partner web site:
If,you are financing or Leasing your vehicle:
If your down payment was or is less than 30% of the vehicle purchase price:
If your is vehicle financed for 24 months or longer:
If you drive over 12,000 miles per year:
If you answered "Yes" to two or more of the questions above, you will need GAP-COVER in the event that your vehicle is declared a total loss as a result of theft, collision, or natural disaster.
In addition, GAP-COVER will:
Enable you to purchase a new vehicle without being penalized for your previous car being stolen or totaled.
GAP-COVER will even pay your insurance deductible, up to $500.00.
If the cost of repairing your car exceeds a percentage of the insurance company's estimates of its worth, your car is a total loss.
Some companies total vehicles at 51 percent of its actual worth; some total at 80 percent.
The insurance company will pay you the car's actual cash value, minus any deductible on your coverage.
Then the car goes to a salvage yard, where it's auctioned off to the highest bidder and usually chopped up for parts.
The insurance company keeps whatever money it got for the car in salvage.
Putting It In Perspective
About 10 percent of collision claims in the United States result in the cars being totalled, according to Larry Costin at CCC Information Services, a company that tracks auto claims for the insurance industry.
And, this doesn't even take into consideration the number of cars that are stolen and unrecovered !
There are approximately 20 million accidents each year, and approximately 2 million total losses.
As another example, State Farm insures about 37 million cars.
It estimates that it totals about 500,000 cars a year in auto claims.
