Everyone has a budget, but when it comes to providing the best value, it is coverage first! This value proposition was proven by the decisions one of our customers made about their auto insurance policy. With the permission of our client we have posted pictures of a recent accident on The Fite Agency Facebook page www.facebook.com/thefiteagency. In the accident, our client had right of way. The damage resulted in the vehicle being totaled.
Our client had chosen to have Uninsured/Under-insured Motorist coverage on their policy as well as GAP coverage also known as auto loan/lease coverage. The vehicle that was at fault could potentially have no insurance or the state minimum limits of liability. Both would result in inadequate coverage to pay for the totaled Range Rover. The Uninsured/Under-insured motorist coverage would pick up the difference in the coverage and ACV of the vehicle. But what about the difference between the actual cash value (ACV) of the totaled vehicle and the loan amount. That is where the GAP coverage comes in. A loan amount can exceed the vehicle value for many reasons including depreciation and higher interest rates.
Be careful though because roll over these may not be covered:
1. Cost for extended warranties
2. Credit Life Insurance, Health, Accident or Disability insurance purchased with the loan or lease; or security deposits not refunded by a lessor;financial penalties imposed under a lease for excessive use.
3. Abnormal wear and tear or high mileage 4. overdue loan/lease payments at the time of loss.
Call our office to learn more about how we can give you the best insurance value; customized specifically to meet your needs. 972-772-0540